Tagged: homebuyer

Important Tips for First Time Homebuyers

When purchasing a home it is important to remember a few important steps that will help you avoid making a regretable mistake – after all more than likely if you are purchasing a home, especially if you are a first time homebuyer you will want to make sure that you are happy with the home you selected and happy with the professionals that you have hired.

According to a recent article in USA Today by Stephanie Armour titled “5 Steps to Buying Your First Home – Tax Credit or No” five main steps if you are purchasing a home for the first time are as follows:

  • Get financials in order – Make sure you are able to be approved for a mortgage. Your first step should be checking your credit score.  The next step you will want to take is to get approved for a mortgage – not just a general preapproval letter. Lastly, make sure the amount of the mortgage is something you can afford.
  • Find a realtor and start looking – Do not just rely on the sellers realtor for searching for a home – the sellers realtor is exactly what it sounds like – the SELLERS realtor.  While this person may seem helpful their job is to look out for the best intrest of the seller.
  • Investigate the reputation of builders or condos – When purchasing a newly constructed house or a condo you will want to make sure you investigate the person you are buying from.  This includes checking with the Better Business Bureau and if you are purchasing a condo it means obtaining a copy of the condo associations financials.
  • Make an offer and apply for a mortgage – as soon as you make an offer on a home you are interested in get one step ahead of the game and apply for your mortgage so that the process is already started.
  • Prepare for closing – Start preparing for the closing ahead of time ask questions that will help you understand the process that you will be going through at closing and find out ahead of time what you need to do to prepare for this.  One major thing most homebuyers do not know about closing is you hae to bring certified funds to the closing which means getting a bank check or a certified check payable to the appropriate party (usually the Seller’s leinholder or the seller directly).

While these are important steps for first time homebuyers there are a few additional steps that as a New York City real estate lawyer I believe are important:

  • Have a home inspection done – This is one of the most skipped steps that first time homebuyers are not aware can change their home purchasing experience from a seemingly good one to a nightmare.  Hiring a home inspector will allow for you to get a heads up on problems the house has including expensive items such as the roof and hot water heater and many other things. A home inspection is usually only a few hundred dollars but is worth every penny.
  • Hire a reputable real estate attorney – Hiring a reputable real estate attorney is another overlooked professional that is extremely helpful to making sure the home purchasing process runs smoothly and again when compared to the costs that you could incur from not hiring a real estate attorney the cost of hiring one seems low.
  • Read up on the real estate process – Find information by professionals in the real estate field – such as lawyers, real estate agents and other real estate professionals that are experienced and reputable.  Our law firm offers a free no cost, no obligation book written by Steven T. Decker Staten Island New York real estate attorney “5 Myths that Can Ruin the Purchase of Your Home”.  This book is full of useful information.

3 Tips On Purchasing a Home In New York If You Don’t Have Enough Money Saved for the Downpayment

Purchasing a home may seem like it is an impossible task for some people, especially for those who have never owned a home before.  Sometimes it can be challenging to find the perfect home but even more of a challenge to some may be saving up money for a downpayment on a house.

Downpayments for homes in New York is generally 10% of the purchase but can be higher or lower depending on the seller of the home.  You may find yourself in a dilema because you want to purchase a home and want to take advantage of the homebuyer tax credit, low interest rates and low housing prices but do not have enough money saved up right now for the downpayment amount.

Here are some tips that may help you get the money for the downpayment amount you need so that you can purchase a home and take advantage of the first time homebuyers tax credit of up to $8,000 before the time is up on April 30, 2010 (must be in contract by this date):

  •  If you see a house you are interested in find out how much they are asking for the downpayment amount if it is a little too pricey for what you are looking for in a downpayment amount but you are able to handle the monthly payments it would cost for the mortgage of the house try to negotiate with the seller to find out if they would be flexible with the downpayment amount and lower it slightly;
  • If you get a lump sum of money back for taxes and are expecting your refund to arrive soon you may want to consider using the money you get back from taxes for a downpayment on a home;
  • If you do not have enough for a downpayment on a house and are looking to purchase a home in New York City (Staten Island, Brooklyn, Manhattan, Queens and the Bronx) you may be eligible for assistance with your downpayment amount with the HomeFirst Downpayment Assistance Program.