Purchasing a home is a significant and thrilling milestone in your life. To ensure that you are prepared for this moment, it is essential to have a clear understanding of what to expect during the process. I have created a step-by-step guide for first-time buyers that will help you reduce the stress of purchasing a home and allow you to enjoy the journey as much as possible. CLICK HERE FOR CLOSING DETAILS
If you plan to finance your potential purchase—meaning not an all-cash purchase—it's important to get pre-approved by a mortgage lender or banker. This will help you determine what you can afford. I can assist you in connecting with reputable lenders. Based on your income and credit history, the mortgage broker will determine how much the bank will lend you. Your pre-approval letter will last 90 days before a new one has to be issued.
Like myself, who has been licensed as an Associate Broker for over a decade, you want to ensure your personalities mesh, in addition to the broker's expertise.
Before you view homes, please make sure your broker meets with you to review the purchase process, terms to know, expected closing costs, and your real estate goals to determine if the home search is the best course of action.
You and your broker will attend viewings and open houses spanning a range of areas and property types.
As your agent, I will thoroughly walk you through the offer process and terms.
Once you have seen a home you like, you can submit an offer, which is a non-binding agreement to pay a certain price for the home. If your offer is lower than the list price, the seller will likely return with a counteroffer price, which you can choose to accept, reject, or make another offer for. Darrell will provide advice on pricing throughout.
Once an offer is accepted, please schedule a home inspection immediately. Although not mandatory, it is highly recommended.
With your attorney and broker, analyze the contract of sale, building financials(condo, co-op only), and board minutes. Working with an attorney specializing in New York City residential sales is pivotal for time and $.
Your atty and broker jobs are vital to protecting your interests, and they have an incredible amount of paperwork to review on your behalf.
Contract deposit in NYC is typically 10% of the agreed-upon purchase price.
After a contract is signed, your lender will order the home appraisal. Regardless of the contract price, the bank will determine the property's value, which determines what % the bank will lend based on the appraised value.
After receiving the appraisal report, the bank will begin the underwriting process.
(If you are purchasing a townhouse or new-development condo, skip ahead to Step 10.) Co-ops are run by a board of directors, who will require a board package in order for you to purchase an apartment. A board package generally consists of financial documents, including tax returns, bank statements, a mortgage commitment from your bank, and a letter of reference. After reviewing your package, the board will set an interview date.
Darrell will help prepare your board package as well as prepare you for your interview. While condos do not generally require board interviews, you will need to present a purchase application that shows you are financially qualified to purchase the home.
Your attorney will provide the exact checks needed for the closing.
24-48 hours before closing, we will conduct a walkthrough of the property to ensure that everything is functional and the same as agreed to in the contract.
For new developments, buyers will have a punch list walkthrough.
Congratulations! You are now a homeowner!
Darrell Williams works in Manhattan, Brooklyn, Queens, and the Bronx. His expertise includes new development sales/leasing projects, investment sales, and 1st time home buyers. Whether you're purchasing or selling, he'll keep you feeling comfortable and confident from start to end.