Financing in Brooklyn>Question Details

Adinah, Home Buyer in Brooklyn, NY

Hi, I was just looking at a Brooklyn condo for $395, 000. The down payt. is $79k. Am I supposed to come up with this in cash?

Asked by Adinah, Brooklyn, NY Fri Jan 14, 2011

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Dear Adinah:

You have to have liquid funds for the down payment. You give a check for the down payment not actual cash. Before you do anything you need to speak to a mortgage broker and show him or her your W-2's and/or tax returns for the last two years, recent pay stubs, your last three months bank statements and have them run your credit report.

You also need to hire an attorney to represent you and guide you through the legal process. It would also do you some good to have a real estate agents help you through the rest of the process. Also keep in mind that when you purchase a property you also have closing costs that can amount to about 6% of the loan amount (although you can finance those).

If I can be of further assistance please contact me. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
1 vote Thank Flag Link Fri Jan 14, 2011
Hello, on my blog I have a FAQ article about buying an apartment in New York City (including the boros).

There you'll find a link to information on how to get a pre-approval letter from a lender. If you do this, you'll find out how much cash you'll need to purchase that apartment you like.

Here's the link to my blog:

http://gothamcityhomes.posterous.com/faq-for-buyers-of-new-y…

here's the same thing, URL shortened:

http://bit.ly/bm79FF

Since it's a condo, there's no board to pass, which makes a smaller down payment much more possible.

Karla Harby VP
Charles Rutenberg Realty
New York City
kharby@crrnyc.com

(Apologies for the computer glitz resulting in 2 copies of this answer!)
Web Reference: http://bit.ly/bm79FF
1 vote Thank Flag Link Fri Jan 14, 2011
The short answer: yes. However, if you're buying a new construction condo that is FHA approved, you could possibly pay as little as 3.5% of the purchase price as a downpayment.

But if you're going to go ahead and put 20% down, you could source it from cash funds (bank accounts) stock accounts, or even retirement accounts (although that's not the idea thing to do) Speak to a finance professional or a mortgage banker.

If you're looking at different options check out http://www.59hawthorne.com. You could get a 1bedroom+ for less than 400k and for 3.5% down, you'd be straining less to come out of pocket with funds.
1 vote Thank Flag Link Fri Jan 14, 2011
If that's the amount you want to put down, yes. Besides that, you may need to also come up with closing expenses. Your question indicates to me that you have not yet sat down with a mortgage broker. That may be the first thing you need to do. Good luck!
0 votes Thank Flag Link Fri Feb 11, 2011
Well, you're not going to walk into your lawyers office with a suitcase full of cash, but instead you're going to get a bank check or a personal check for $79K.
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Thu Jan 20, 2011
Any downpayment is in cash. These questions confer with your mortgage broker for all your answers

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Jan 14, 2011
Hello, on my blog I have a FAQ article about buying an apartment in New York City (including the boros).

There you'll find a link to information on how to get a pre-approval letter from a lender. If you do this, you'll find out how much cash you'll need to purchase that apartment you like.

Here's the link to my blog:

http://gothamcityhomes.posterous.com/faq-for-buyers-of-new-y…

here's the same thing, URL shortened:

http://bit.ly/bm79FF

Since it's a condo, there's no board to pass, which makes a smaller down payment much more possible.

Karla Harby VP
Charles Rutenberg Realty
New York City
kharby@crrnyc.com
0 votes Thank Flag Link Fri Jan 14, 2011
If you are getting 80% financing, then the mortgage company will require that you come up with 20%. Despite the large cash outlay, you end up with a smaller monthly payment because you are borrowing less. Although you can apply for mortgages with 10% or even as low as 3%, if you can qualify for an 80% mortgage, the process is faster most times. But speak with your bank to explore your options for a mortgage. Of course, you should work with your attorney and make sure you are dealing with a credible professionals.
Web Reference: http://www.bredwards.com
0 votes Thank Flag Link Fri Jan 14, 2011
Do you have an agent and do you have an attorney yet...if so they can best advise--yes, you need to come up with the downpayment--if your total downpayment is 20%, generally, you will 10% at contract signing and the other 10% at closing...
0 votes Thank Flag Link Fri Jan 14, 2011
My colleagues gave good advice - be sure to use a lawyer and keep it in escrow...
http://www.postlets.com/res/4919012

Regards,

Jack Menashe
917.797.0215
http://www.SHERestates.com
0 votes Thank Flag Link Fri Jan 14, 2011
Well you are putting that money in attorney escrow while in contract to get your mortgage. Generally it's 10% of the selling price.You should have a real estate lawyer helping you with the process. Speak with him/her about the process
0 votes Thank Flag Link Fri Jan 14, 2011
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