The New York City Buyer’s Guide: Getting Started

New York is home to one of the world’s most exciting real estate markets. With the help of our three-part New York City buyer’s guide, you’ll learn the nuances that make the city’s real estate process unique and gain an edge in the market. When you’re ready to take the next step, our top-performing agents will be here to help you determine which neighborhood offers the character and amenities you desire, which type of property suits you best and how to negotiate the best deal. All the resources and influence we’ve gained as the #1 brokerage in New York City will empower your real estate buying experience. Photo: HEMISALAMY Getting Started When beginning to explore your options, it’s important to understand what New York City real estate has to offer. The city’s residential market is mainly comprised of cooperative apartments (co-ops) and condominium apartments (condos) along with a smaller selection of private homes (townhouses). Below are the key steps to start your search for any of these property types. 1. Clean up Your Credit Banks use credit scores to evaluate the risk of lending to individuals. If you know you’ll need to borrow money from a bank to finance your home , learn your credit score as soon as possible and work to boost it as needed. Websites like Credit Karma will provide your credit details without damaging your score. 2. Prepare Your Savings You’ll typically be expected to put down at least 20% of the sale price upfront, plus additional closing costs. Your real estate agent will be able to provide you with a complete breakdown of these associated expenses. 3. Get a Pre-Qualification Estimate This can easily be done over the phone with your bank or mortgage professional. A loan officer will ask you about your income, assets, debts and projected down payment. They will then determine the amount you’ll most likely qualify for based on the information you’ve provided. 4. Complete Loan Pre-Approval After pre-qualification, you’ll want to work with a lending institution to receive a written “good-faith” estimate of the amount you’ll be able to borrow. This step requires an in-person appointment and a possible fee. You’ll be expected to submit more information, such as pay stubs, bank statements, tax returns and other financial documents. Once you receive your pre-approved loan statement, it is normally valid for 60 days. Real Estate Terms to Know: Appraisal Process of determining a property’s market value. Closing Costs Expenses over and above the price of the property, paid at the closing. Common Charges Monthly charges paid by condo owners that cover the cost of shared building amenities. Contract of Sale A legal agreement between a buyer and seller that outlines the terms of purchase or transfer for a property. Co-op Board A group of residents elected to represent all shareholders within a co-op building. The board determines the rules of the building, addresses building issues and reviews new-buyer applications.   Final Walk-Through A property inspection that takes place a few days before closing so the buyer can ensure the space’s condition is true to what is specified in the contract. In Contract An offer has been made and accepted on a property. The buyer has paid a deposit and both seller and buyer have signed the offer. The listing is no longer available unless the deal falls through. Maintenance Fee Monthly charges paid by co-op owners to cover operating expenses of the building, including taxes, insurance, etc. Mortgage A loan that a bank or lender gives you to buy a house. A mortgage payment is made up of principal, interest, taxes and insurance. Pre-Approved Written statement from your bank or lender confirming that you are approved for a specific loan amount. Pre-Qualified An estimate of the loan amount you will likely be pre-approved for. Discover the best homes New York City has to offer or read the second installment of our New York City Buyer’s Guide .