Youbfine, Home Buyer in New York County, NY

What is Affidavit of occupancy and what does it mean. Bank wants me to sign one at the closing, What are the risk? is this a routine?

Asked by Youbfine, New York County, NY Sun Sep 5, 2010

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When you purchase a property as an owner occupied residential property, the bank wants to make sure you are indeed living there as your principal residence. If it was an investment or second home you should be getting an investment type of mortgage, because it is a higher risk to the bank, it comes with a higher interest rate and higher donw payment. If you are indeed living there you should have no problem signing that you intend to live there as your principal residence,. if you are not intending on occupying the property , then before signing, your attorney can let you know the consequences. I think agents need to tell you why instead of just saying the obvious and generic statement of contact your attorney without any reasons why you are being asked to sign that form.
1 vote Thank Flag Link Mon Sep 6, 2010
Why aren't you discussing this with your attorney? It means they want you to put in writing that you will be occupying the property and are not buying it as an investment property. Please discuss with your attorney.
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1 vote Thank Flag Link Sun Sep 5, 2010
Your attorney can best advise you--it refers to the property as your primary residence.
0 votes Thank Flag Link Mon Sep 6, 2010
When you purchase a home as a primary residence versus an investment property, you usually enjoy the benefits of a lower interest rate because most people will try a lot harder to keep a primary versus an investment property. The banks view investment properties as a greater risk. Good luck.

Ralph Windschuh
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Century 21 Princeton Properties
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rwindschuh@c21princetonproperties.com
In The Top 2% of Century 21 Agents Nationwide!
0 votes Thank Flag Link Mon Sep 6, 2010
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