Home Buying in 11238>Question Details

Theodora Dig…, Home Buyer in Brooklyn, NY

Is it practical for me to purchase now, or do I need to wait to save for a larger down payment?

Asked by Theodora Diggs, Brooklyn, NY Tue Jun 23, 2009

Hello, I would really like to purchase a 2 bdr coop or condo in the 11238, 11205, 11215 area. My score is 685 I make a very good salary (low six) with little debt. I saved enough money for a low down payment like 3.5%, am I being realistic about purchasing? By the way, I am very nervous about this whole process.

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Answers

7
T.D.
Mitchell is right. Condos and co-ops are two completely different animals.
To go with an FHA loan(3.5% down) you would need to purchase a CONDO in an FHA approved building.

Talk to a Banker to get pre-qualified. Then see what's available in your price range. That will help you to make your decision as to whether or not it's practical for you to purchase now.

Understand that you can structure your FHA purchase so that the Seller pays your closing costs/and or can buy down your interest rate/payment for the first two years to keep your payments low while you ease into homeownership.

Buyers calculate your rate/payment:
1 vote Thank Flag Link Tue Jun 23, 2009
Dear Theodora:

Now is a good time to buy because if you can close by November 30, 2009, as a first time buyer you will be getting an $8,000.00 tax credit from the government. This will literally put $8,000.00 into your bank account after the closing (assuming your income is less than $75,000.00 per year or $150,000.00 for a married couple). In addition to that interest rates on mortgages are still very, very low and so are prices. What you need to do is speak to a mortgage banker and get yourself pre-qualified. When you do this you will be able to find out how much you can borrow and how much your mortgage will cost you every month. Then you can prepare a budget and know how much you can spend. This is always the most important first step in purchasing a property.

Having said that, there are several points you will want to consider:

1) When you are going through the process of purchasing, you need to make sure that your credit score does not change (get worse). Make sure you do not go out and make any major purchases (like a car) or increase your credit card debt in any way. And make sure you pay all your bills on time.

2) In order to better know how much of a loan you can qualify for, we would need to know your income, that is the main thing that comes into consideration when trying to determine how much you can borrow.

3) Buying a co-op will be difficult for you because the vast majority of them will require a larger down payment. Most here in Brooklyn will want at least 20% down so you are probably better off with a condo.

4) You will also incur closing costs as a buyer which can be up to 6% of your loan amount. Be prepared for that. If you do not have the money to pay for the closing costs yourself, you can borrow them. Again, you will need to discuss this with the mortgage banker.

5) Assuming you are qualified, you will be paying about $56.80 for every ten thousand dollars you borrow. this is based on a 30 year fixed FHA type mortgage. Again, assuming you are qualified... speak to a mortgage banker. :)

6) Once you speak to the mortgage banker and know how much you can spend and how much it will cost you every month, you will not feel so nervous. Then you can simply look at all the properties that fit within your budget and hopefully at least one of them is good for you and then you can buy it!

Without knowing your income, this is the best I can do to answer your question. If you want call me and we can discuss all this further. I you like I can also put you in touch with a great mortgage banker and show you properties that would meet your budget and needs! Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, inc.
Office: (718) 645-1665
Email: MitchellSFeldman@aol.com
1 vote Thank Flag Link Tue Jun 23, 2009
Your main focus should be on improving your credit score, but this needs to be approached carefully. Do not trust any of the so-called "credit repair" companies out there. I have heard good things about a company called Veracity Credit http://(www.veracitycredit.com). Yous should also talk with a mortgage broker about the availbility of low down payment financing -- it's usually restricted to only certian types of property/locations. Some new developments may offer sponsor financing with low down payment requirements as well. A good real estate broker can also guide you through the whole process and help with the "first time buyer" jitters. Good luck!
1 vote Thank Flag Link Tue Jun 23, 2009
Dear Theodora,

Only you can decide when it is the right time for YOU to buy. Some people try to "time" the market, but
I take the approach of preparedness and persistence, instead. That's how a HomeBuyer sets the BEST time to buy a home.

Prepare to buy:

Get Prequalified for mortgage financing: focus on monthly payment.

Understand your price range: determine your price limits for making offers.

Know the location where you want buy your home: when you do, find an experienced Local Realtor.

Have your "wish list" ready with the preferred features of the home you want: the "Dream Home" exists in our minds. Knowing your preferrred features of the home you most want helps you compromise when you find the right house at the right price that meets most of your preferred features. You can always add a fireplace later!

Persistence:

WHEN you go out there, shop 'til you drop. It's perfectly normal to be nervous: Buying the right home is hard work. Looking at homes, then giving concise feedback to your Realtor helps you find a home that meets your needs and a Seller willing to sell at the price you're willing to pay. You'll be disappointed a few times, that's part of the process. Stay with it and you are sure to make your own "BEST" time to buy a home.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Wed Jun 20, 2012
Hi Theodora:

So far you look good with one exception! Most co-ops require a 20% down-payment! You may find some asking for 10%. As of yet, I haven't seen 3.5%!

Your salary is unclear! Is it low 60's or 600's? Your salary will determine whether or not you qualify for the
FREE $8000 TAX CREDIT for FIRST TIME HOME BUYER. This is additional money that could be used towards your closing cost. Read:http://www.trulia.com/blog/PierreKing/ to beat the deadline, see how you can get the money before January 1, 2009 and find out whether or not you qualify!

In reference to your nervous, my goal is to ease the fear, tension, and stress that comes with the buying and selling process! You may contact me, as to when and where my next Buyer's Seminar will be held.
Don't be nervous, the expert will guard you through this process!

Thanks!

Pierre S. King, Associate Broker
Weichert - H .P. Greenfield
718 692-4444 Office
718 253-6853 Fax
917 407-6697 Cell
http://www.kandhHomes.com
http://www.hpgreenfield.com
WHEN PROPERTIES ARE FOUND CALL ME: http://www.weichert.com
email:MrRealEstateKing@yahoo.com
JOIN ME FOR FREE TIPS: http://www.twitter.com/1realestateking
http://www.youtube.com/user/MrRealEstateKing
http://www.trulia.com/blog/PierreKing/
Web Reference: http://www.kandhHomes.com
0 votes Thank Flag Link Tue Aug 4, 2009
If you haven't already so now is the time to speak to any qualified loan officer and see exactly what your budget can handle. Keep in mind if looking at coops, they do require minimum down payments, and just because you may be approved for a mortgage does not mean you will satisfy board requirements.

Anna
917-576-5376
abrocco@laffey.com
0 votes Thank Flag Link Fri Jun 26, 2009
As an agent looking at the market and all the cons been offered
to first time buyers. just do it and take advantage of the times.
Purchasing a home is not a short term investment think of your future.
I could clear up some of the major concerns preventing you from
moving forward. If you can find a house that fits your needs and
budget and lifestyle for several years to come then now might
be a great time for you to buy a house.

If you have additional questions, please direct them
to me or need an agent feel free to call.
My Direct # 347-813-1290.
Here is my website http://fajardodelacruz.realtors.officelive.com
or my e-mail delacruz.fajardo3@gmail.com
Hope to hear from you soon.
0 votes Thank Flag Link Fri Jun 26, 2009
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