If you are looking to buy a loft apartment in New York City,
Manhattan Lofts, Inc. is here to guide you through the process.
Where to start?
The most desirable loft apartments for sale in Manhattan can go to contract in a matter of days. Being prepared and ready
to make an informed decision, when you see the property you want, will allow you to act quickly in this competitive market.
If you are ready to buy, the following information will guide you through the exciting process of buying a loft in N.Y.C.
KNOW WHAT IT TAKES
- Annual Income
Unless you have significant liquid assets, you can generally borrow up to about twice your gross annual income. Otherwise, your monthly mortgage + maintenance payments ideally should not exceed a week¹s gross salary.
- Financial Statement
A financial statement should be prepared by your accountant, which
lists your net worth (assets, liabilities, salary, bonus, other income).
At Manhattan Lofts, Inc. ("MLI"), we submit all offers with financial
substantiation. We suggest having your financial statement completed
as quickly as possible. With many loft apartments receiving multiple
bids, it's not always the highest bidder, but the most "qualified" buyer
whose offer is accepted.
- Asset Valuation
A down payment alone will not qualify you to buy a co-op or a condo loft in Manhattan. To guarantee timely collection of your maintenance payments, the Board will look for assurance against unexpected loss of income. Most cooperative buildings require liquid assets to cover a minimum of one year's maintenance and mortgage payments after closing. Many buildings require in liquidity up to three years of combined costs. Your Manhattan Lofts, Inc specialist will guide and assist you with the specific necessary requirements.
- Credit Check
Check your credit history. Resolve any disputed claim and have it removed as soon as possible. Keep all of the documentation that shows the matter has been resolved.
- Choose a Mortgage Broker
Mortgage brokers save time and money. Your MLI agent can assist you in selecting a mortgage broker.
- Be "Pre-Qualified" - "Pre-Approved"
All offers submitted by MLI are accompanied by the buyer's pre-qualification letter if there will be financing. Being pre-qualified means that you've told the lender your income level and debt and credit information and the lender has provided an estimate of the loan you can afford. A buyer with pre-qualified loan financing has the advantage of reassuring the seller that they are serious and qualified for the purchase. A consultation with a mortgage broker will provide you with an overview of financing options, estimated monthly payments, and necessary qualifications. The strongest offers are made with pre-approved letters. This means the lender has pulled your credit report, checked your debt-to-income ratio and has performed a detailed analysis of your financial situation. It is preferable to be pre-approved so that there will be no surprises when the credit report is received.
- Select an Attorney
It is essential to select an attorney who specializes in Manhattan real estate. In today's fast market, it's important to use a professional who's knowledgeable and can respond quickly. MLI can assist you in selecting a qualified real estate attorney.
- Application Process
For your mortgage and Board applications, you will need to gather financial documentation such as the last two months of your bank and brokerage statements and other proof of assets. In addition to current income verification, Boards and banks require a minimum of two years of federal income tax returns. If you are self-employed, you will need to provide a minimum of three years of federal tax returns and a letter from your accountant verifying your current income.
- When do I need to move?
What is the target date for your move? If you plan to seek mortgage financing, you should know that it takes an average of three months for a purchase contract to close. Therefore, you should begin your search four to six months before you wish to move.
- Where do I want to live?
Manhattan is a city of diverse neighborhoods, all with their own unique appeal. Before you begin your search, decide what is important to you: do you want to be close to work or is proximity to public transportation sufficient? Do you prefer a residential neighborhood or a bustling hub of activity and nightlife? It is good to be open to alternative areas. Neighborhoods other than your "first choice" might be more affordable and offer many of the same features. For more detailed information on specific neighborhoods, see our Neighborhood Profiles. Your Manhattan Lofts agent will provide you with a number of neighborhoods that meet your needs and can recommend other areas that you may not yet be aware of.
- What's my budget
If you are considering buying an apartment, the first step is determining what you can afford to buy. The following are the two basic rules:
-
You can generally borrow twice your annual gross income.
-
You need to have cash for a down payment. Many co-ops require at least 25% down, sometimes more.
You may have heard about FHA and VA mortgages where financing is available up to 97% of the purchase price. This
generally does not apply in Manhattan; most purchase deals involve conventional financing. You may be able to obtain
maximum financing for a condominium, but most co-op boards do not allow more than 75%. Some buildings in
Manhattan do not allow any financing at all.