When you buy a property, you invest your years of savings on it. Many people buy it from the family money they have inherited. Whatever the source of money is, it is certain that it has savings from you or your parents or grandparents.
People start to look for a house with a lot of aspirations of moving into a better place and into a better neighborhood. The research is important, but you should know where exactly you need to start from. Angus Reed, a notable personality in the NYC property market, gave us some tips that will help you if you are in a similar incertitude (Know more About Angus Reed).
1.Credit Score: Your search should actually start with a good assumption of how much you can spend. Banks use FICO scores in order to determine the creditworthiness of an individual. These scores range from 300 points to 850 points and the higher points represent the better creditworthiness.
Getting this score is important since, this will give you enough time to clean up pending dues like the tax liens and parking tickets. Once you pay any of your dues, your score will come up. This may take a dew months, hence it is important to start with this step first.
2.Preapproval: This is a rough estimate of how much one can expect from a lender. You will need to submit the details like your credit and financial information to the bank. Generally, banks do not charge anything for a preapproval document and even if they do the charge will be very nominal.
A preapproval letter comes with an expiry period of 90 to 120 days so you need to get started as soon as you get this amount.
3.Condo Or Co-op: A co-op is a property that belongs to a cooperative society and the buyer takes a share in the cooperation. If you buy this, you will get the property for lease. But buying a co-op is not easy, they can ask for any detail from you and you will need to produce them. Any change in the architecture is prohibited and even renovation needs special permissions. A condo is very different, since you get full rights to do what you want.
4.The Search: In order to narrow your search, you need to set your preferences right. You need to answer simple questions like how much security you need and how much privacy you need. A good agent will ask you these questions and will help you determine the right property for you, that too in a short time.
Find a good agent, lawyer, and broker who will help you through the process and will guide you wherever you need them. Be clear on the fees of these professionals and let there be no confusion.
5.The Research: An old construction might have some problems related to plumbing or electrical wiring. You need to prepare yourself for these expenses if you are going for an old one. Always remember that the amount of down payment should always be more than or equal to 20% of the price of the property.
Make a complete list of the expenses that will be over and above the down payment amount and set aside some additional funds for renovations.
Be prepared to get disappointed about not buying a property that you just loved. This will happen. You should just stick to your budget and be clear that you cannot go over that in any case.
Remember that buying a property is a process that is very long, tiresome and exhausting. You need to stay focused and get the best for yourself!