Are you thinking of buying a home in the amazing state of New York? Homeownership is a wonderful thing. Not only is owning a home a great investment it can also bring you a lot of joy.
If you have never purchased a property before, the process may seem overwhelming. Luckily, there are some things that you can do to make the process much easier and far less stressful.
Today, we are going to learn 6 steps to buying a new home. Each step will help guide you in the right direction.
Determining Your Credit Score
The first step in buying a home in New York is to determine your credit score. With the right score, you can easily qualify to purchase a home.
Your credit score can influence your down payment amount, your annual percentage rate, and the amount of your monthly mortgage payments.
How high should your score be before you can buy a home? In most cases, a credit score of 640 is normally required by traditional lenders.
For those applying for an FHA loan or a VA loan, a score in the 500s is sometimes acceptable. Keep in mind, the higher your score the better your chances will be of purchasing your dream home.
How Much Cash Should I Have?
Buying a home will require you to to have cash in the bank. You should have enough in your savings account to pay for things such as closing costs, your down payment, and any moving costs.
To determine the amount you need to have in savings, you will need to consider several factors.
First, you need to have a good idea of how much your down payment is going to be. Most mortgage lenders require around 10% to 20% of the overall price of the home you are buying.
For example, if you are buying a house that costs $500,000, you will need at least $50,000 saved for the down payment. Next, you have to figure out how much your closing costs will be.
Typically, your closing cost will be around 5% of the total value of the home. However, your closing cost could be as low as 1% and in some cases, the seller will cover these costs for you.
Finally, you will need to have enough money saved for your moving expenses. These expenses will be determined by the distance you are moving and how much you have to move.
To find out what your moving expenses will be, shop around and get a few quotes from moving companies in your area.
Get Pre-Approved For A Home Loan
After you have money saved and you know your credit score, you will want to get pre-approved for a home loan. This will help you in several different ways.
Having a pre-approved mortgage offer will let you know how much you can qualify for to spend on a home. It will also help make the buying process much easier.
If the seller sees that you are pre-approved for funding, they are more willing to work with you and choose your offer over another that may not yet be pre-approved.
Choosing The Right Real Estate Agent
If you are thinking of buying a home in New York, you are going to need a good real estate agent.
Sure you can buy a home without an agent, but the process may be much more difficult and could leave you open to legal liabilities you may not want to be responsible for.
Having a good agent by your side will help you in many different ways. Real estate agents not only know the local housing market very well, but they can also help you through the entire buying process.
When looking for an agent, find one that communicates well, and truly understands your needs.
The Process of Making An Offer and Negotiating
When you see a home you love, it’s time to place an offer on the property. This should be done through your real estate agent, who will negotiate on your behalf with the seller’s real estate agent.
Their agent will give the offer to the seller and he or she will either say yes or no to the deal, oftentimes with a counter offer. If the deal seems right to you, then you can accept.
However, if you want to bring the price down a little more or get assistance with closing costs, you can counter their offer. This can go back and forth until circumstances are agreed on, or the deal can fall through.
To better your chances of having your first offer accepted, make sure that you offer them a fair amount. Many sellers will walk away from a deal when they feel you are trying to be too cheap.
|** Bayside||** Flushing|
|** Whitestone||** Fresh Meadows|
|Nassau County||Suffolk County|
Your Offer Was Accepted, Now What?
Great news, your offer has been accepted! These are the words every home buyer likes to hear. But what happens next? Once your offer has been accepted by the seller, your lender will require that the home be appraised.
This will ensure the lender that the home’s value matches the amount of money they are loaning out to you. During this process, a home inspector will come to the property and look for any damage.
The inspector will also determine if the home is free of termites and any other pests that may cause damage to the property. Once the inspection is over with and nothing major was found, you can close on the home and it will be yours. After closing, all you have left to do is move in!
This is the basic process of buying a home in New York. As you can see, it isn’t as difficult as it may seem. Remember that working with the right real estate agent can make all the difference.
Also, make sure that you are financially sound before even looking at purchasing a home. If you follow these simple guidelines, you will be on your way to homeownership in no time!
Have Questions? Ask NYKWHomes
Keller Williams Realty Landmark is the best source of information about the local community and real estate topics. Give NYKWHomes a call today at (718) 475-2700 to learn more about local areas, discuss selling a house, or tour available homes for sale.