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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. Thisgenerally does not apply
in Manhattan; most purchase deals involve conventional financing. You may
be able to obtainmaximum financingfor a condominium, but most co-op boards
do not allow more than 75%. Some buildings in Manhattan do not allow any
financing at all.
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