[Buying a house guide] New York students' guide to buying a house for beginners
Whether you are buying a house with cash or a loan, financial preparation is always an indispensable step, and it also takes the most time.
>>>If you plan to buy in cash: please plan ahead to transfer domestic funds to a bank account in the United States as soon as possible, and the annual remittance amount per person Still $50,000. In addition, the United States cannot purchase real estate by credit card. The buyer must have a bank account in the United States or can choose to entrust a real estate company or a lawyer to deposit it in a bank-supervised account for special use.
>>>If you plan to take out a loan to buy a house: If you have a working income in the United States and are eligible for a loan, you can directly consult your bank or loan intermediary about loan interest rates and matters . If you are working in China, you can also provide domestic wages, assets and contact the bank or loan company specializing in foreign loans.
Home Buying Tips: Remember These 7 Steps
-STEP1 Find your Buyers' Agent-
When you are interested in buying a home or want to know about real estate ideas, it is recommended that you take some time to communicate with your buyer's agent and put all your thoughts on the property , Tell the broker truthfully about the financial situation.
>>>Buyers’ Agents will find suitable properties based on the information you provide, make appointments for viewings, coordinate viewings, and represent buyers In the process of real estate consultation and transaction, he participates in leading various negotiations, negotiations, negotiations, recommends professional lawyers, real estate appraisals, real estate inspections, etc. Brokers play a vital role in the entire real estate transaction process, so it is very important to choose a professional and satisfactory real estate agent.
When Buyer’s Agent, your agent finds a listing that matches your proposal, it will make an appointment according to your time, accompany you to see the house, and contact the seller The broker knows the relevant information of the listing (whether there are other purchase intentions, whether the building management will review the process is cumbersome, etc.). The entire viewing period can be long or short, with an average of 3 months.
-STEP3 is spot on, offer-
When you see a listing you like, your agent will research the market for you and suggest an Offering Price based on (Market Comparable). If you agree, the broker will prepare a Purchase Offer Form for you, that is, fill in the purchase intention and send it to the selling broker. Purchase Offer generally contains Legal Full Name, Contact Number, Current Address, Purchasing Price, Cash or Financing (Down Payment Amount), Attorney Information and Proposal Closing Date .
At the same time, provide your proof of funds. If you purchase in cash, you need to provide Proof of funds (Bank Reference Letter or Bank Statement). For loan purchases, the previously mentioned loan approval letter (Pre-Approval Letter/Pre-Qualification Letter) needs to be attached.
-STEP4 Negotiate on the basis of Offer and reach an agreement-
After the seller's agent receives the purchase intention, he will communicate it to his client, that is, the seller. If the seller accepts the conditions on the Purchase Offer Form, that is, Accept Offer, and The seller's lawyer will be contacted to draft the house purchase contract. At this time, the so-called In Contract stage is entered.
In New York, buyers and sellers must hire attorneys. Your buyer's lawyer will review the contract sent by the seller's lawyer and make changes, deletions or additions based on your individual case. For example, whether to join the contract depends on the terms of the loan (Mortgage Contingency). The buyer's attorney also conducts a due diligence review of documents about the property, informing the buyer of the risks and disadvantages that may arise from the property.
>>>Conditions of the contract and details of the sale and purchase transaction are very important and must be discussed with a lawyer to fully understand the risks and obligations involved
If the buyer and the seller have any objection to the contract, they can report it to their respective brokers for negotiation and communication until the two sides reach a consensus. After the lawyers of the buyer and seller communicate until there is no objection to the terms of the house purchase contract, the buyer and the seller sign the house purchase contract. After signing the contract, the buyer generally needs to pay 10% of the purchase price of the house as a deposit (that is, the down payment in the process of buying a house).
-STEP5 Final preparations for buying insurance, locking interest rates, etc.-
After signing the purchase contract and paying the deposit, the buyer will prepare the Purchase Package with the assistance of the broker.
>>>The buyer's attorney will hire a title company on the buyer's behalf to conduct an investigation, issue a title report and purchase Title Insurance. The property rights investigation will mainly review the historical transaction status of the house, loan status, tax payment status, house owner information, and whether there are any unresolved legal disputes and so on.
If taking out a loan to buy a house, the buyer will contact the bank for the loan and hire a house appraiser to give a house appraisal (Appraisal) to finalize the loan amount and lock the interest rate. The bank agrees to the loan and finally issues a Commitment Letter for you.
While preparing for the above, the buyer can also choose to hire a professional Inspector to conduct a comprehensive inspection of the house and purchase Homeowner Insurance. The cost of home inspection in New York is generally a few hundred dollars to more than one thousand dollars. The inspection process takes several hours, and the report is obtained after 1-3 days. While condos in New York are in good condition, 98% of the time there are no issues. If problems are found after the inspection, you can negotiate with the owner again, and the seller will repair, reduce the price or suspend the transaction.
-STEP6 Apartment Board Approval-
Purchase Package consisting of the purchaser's agent who submits a purchase application to the Condo Board and the purchaser's finances, credit, work, etc.:
>>> Usually includes a Financial Statement, tax bill, employment certificate, personal reference, etc. The Condo Board will carefully review the content of the Purchase Package. Under certain conditions, the Board has the right to refuse the purchase by the buyer. Generally, within two weeks, the building management will reply to the brokers on both sides to approve the transfer or need to submit additional materials.
Congratulations, you have a home in America!
After the brokers of the buyer and seller get the approval of the apartment management committee, they will contact the loan bank and the title company to negotiate the transfer details, verify the transfer fee and make an appointment for the Final Walk Through. 1-2 days before the transfer, the buying agent will take the buyer to inspect the house again to confirm that the house has not changed or damaged since the last inspection.
Dealing on the closing date will usually take place in the seller's lawyer's office, or in the case of a loan, it may be the location designated by the bank's lawyer. Buyers are required to bring their valid identification and bank cheque (Certified Check) to pay the remaining house price and the fees involved in the transfer of the house. After signing a series of documents, one handed over the check, the other handed the key, and officially became the head of the household.
Usually within 1-3 weeks, you will receive an Original Recorded Deed that has been registered with the government.