It is very common for individuals wishing to purchase real estate in New York City to obtain a mortgage (the most widely utilized form of outside financing), in order to buy property.  A mortgage, in laymen’s terms, is basically just a long-term loan (most commonly 15-30 years). 

 

A mortgage is paid off on a monthly basis, and like shorter-term loans is subject to interest, which can either be a fixed or fluctuating percent, depending on the type of mortgage you obtain.

 

If you know that you will need to take on a mortgage in order to purchase property in NYC, it is in your best interest to meet with a mortgage broker and gain pre-approval before submitting your buyer’s application to the board of either your desired condominium or co-op.

 

This pre-planning will help you determine both your buying limitations and most suitable prospects, and likewise demonstrate to your prospective building’s Board of Directors, that you are a financially astute and serious applicant.

 

Homestead New York has relationships with some of the most knowledgeable/efficient mortgage brokers this city has to offer, and will assist you in finding a top-notch lender, if you have not already settled on a trusted provider.

 

Prerequisite Documentation

 

In Manhattan the documentation required for obtaining a mortgage is not standardized, but generally speaking Mortgage brokers are looking for you to provide the following paperwork

 

-Copies of tax returns (the number varies)

-Bank/investment statements (anticipate needing copies from al least the past three years)

-Recent Pay Stubs/W-2 forms

-Often a letter from your CPA verifying your employment (specifically for self-employed applicants)

 

Be prepared to undergo a credit check, review your credit report, and try to clear up any outstanding debts.

 

Projected Monthly Payments

 

It is possible to obtain a rough understanding of what financing will look like for your situation by utilizing our mortgage calculator.  This will give an approximation of your theoretical monthly payment, based on a relatively “standard” lender.