Here’s another tip in our series to help our buyers avoid the 9 Common Mistakes Buyers Make:
Mistake #3: Not getting pre-qualified by a bank.
In addition to choosing the right bank, it is important to know how much you can actually borrow. We suggest that you meet with your bank (or mortgage broker) of choice and provide a sample feature sheet on a Manhattan townhouse similar to the one you hope to buy. If you do so, a bank can review your finances and pre-approve your loan. Then, when you find a home you wish to buy, they can tell you how much they will loan on that particular building in a matter of days rather than weeks.
Such a pre-approval will help you be more confident in your bidding, resulting in a better chance of being the winning bidder. Conversely, not investing the initial time in obtaining a pre-approval has resulted in many fruitless negotiations and heartaches. Also note that certain banks have commercial loans that can later convert to the lower rates of residential loans after you meet certain criteria.
Need Solutions? Want your NYC townhouse purchase to run smoothly?
Call Cathy anytime at (212) 769-2900 or email her at email@example.com.
Next up in this series: Mistake #4: Being unaware of renovation costs for your New York townhouse.