What is the process of buying a condo in NYC? Two types of homebuyers in NYC might have that question. The ones that have already decided on this apartment type and the ones that might be comparing the process of buying a condo to buying a co-op.
The Process of Buying A Condo
The process of buying a condo is relatively simple. It starts with your finances and is simplest when you are buying with cash. But if you are buying with a mortgage, you will need to first understand how much mortgage you qualify for. This can be dictated by your Debt-to-Income (DTI) ratio and how much you have saved up for your down payment. Even if you can afford a mortgage for a $2 million condo, you might not be able to buy it if you have only $200,000 saved up for a down payment. Getting a preapproval letter can also be helpful.
The next step of the process is looking for the right condo to buy. This is also the stage where you should have a New York City broker by your side. If you are buying in a new construction, you may be dealing directly with the building owners and may be able to negotiate discounts and even lower common fees, among other perks. But if it’s a resale condo, you can only negotiate the price.
Once you have selected a condo and negotiated a price, you may need an inspection to make sure everything is in order. You will also need condo board approval and need to submit an application and some documents, but condos rarely reject buyers, especially compared to co-op rejection rates. Then there is closing and moving in.
Final Words
The process of buying a condo in NYC is significantly easier than a co-op, primarily because of the power the board holds over these transactions.
Also Read: Financing Your NYC Real Estate Investment Through Mortgage
