Buying an Apartment in NYC

One of the biggest goals people in life set for themselves is to one day be a homeowner. Gone are the days of paying someone else mortgage or being told you cannot paint the walls. What many fail to realize is that buying a home can be one of the biggest stresses in life. I recently had the privilege to purchase a co-op in Kew Gardens, NY and have created a list of the top things to consider when looking to purchase a property in NY. The first and most important is to plan. Get your credit card debt to a minimum and plan to not make any major purchases within at least six months prior to going thru the mortgage process. Missed payments, derogatory remarks on credit and an unacceptable debt to income ratio will certainly make the process of obtaining reasonable financing a challenge. Second, see as many properties as you can and do not fall in love with the first place you see. I remember each apartment I toured I envisioned my self-living in. This kind of romanticizing can easily allow emotions to get involved and the process is too unpredictable to have your feelings hurt. When you finally find that property you love, make an aggressive offer, or be prepared to possibly lose out to someone with a higher offer or with better financing terms. For example, offers are usually accepted fast by buyers who are making an all-cash purchase or are putting more cash down. In New York City most properties are either a Co-Op or Condo. Both generally require approval from the Board and that is only after your offer is accepted by the seller. Boards are notorious for digging deep into your personal life, public records, and financial stability. This not only adds to the stress as not only does a mortgage company have to find you acceptable as a borrower, but the seller also must select your offer to accept and now a very stringent board approval is required. Luckily, there is a way around board approval. Its call a Sponsored sale. A sponsored sale of an apartment means that shares in the Coop for that unit have not been given to the current owner and as a first-time owner into the Coop you do not need board approval. This is how I was able to purchase and bypass the requirements and process of obtaining board approval. This also reduced the time frame from when my offer was made to closing. Of course, be aware that sponsored units are highly sort after and therefore usually come with an increase in market value price. When buying a home, plan, do research and manage your emotions and expectations.

Phot by : Kevin Dooley