Carol Bromm

On Long Island, the sale contracts are written by attorneys. The Agent writes a binder and uses that to negotiate the sale price. After the price has been agreed upon, the buyer will send in a home inspector. The home should be free of leaks and infestation, All appliances are to be in working order, along with the plumbing, heating, and electrical systems. After the inspection the buyer decides if they are going forward with the transaction. If so, the binder is sent to the both attorneys' office, where the seller's attorney writes up the contracts and sends it to the buyers attorney. The buyer will go to his own attorney to sign the contract and leave the earnest money deposit. On a starter home, the amount is usually $5000 to $10,000. A move-up home would be more.

The appliances normally included in the sale are the refrigerator, stove, washer and dryer, and any built-in units such as dishwashers, microwave ovens, wine-refrigerators, etc. Freezers are optional. Quite often the homeowner will leave it so they don't have to move it.

From contract to close is normally 60-90 days. - Wed Jul 2 2008, 19:29

If you are trying for SONYMA financing they will be looking at your past 3 years tax returns to see if there are any tax deductions for mortgage interest or property taxes. If it has been at least 3 years since you have owned a home, then you are a first time home buyer. - Wed Jul 2 2008, 18:59

FHA usually requires 3% down. There are some areas that are considered "declining markets" and your lender may require a higher percentage there.
Did you look into SONYMA? If you are a first time homebuyer, and qualify, that may be your best bet.

Check with more than one lender. If you have already had your credit run, you can give the middle score to the other lenders to find out what programs you would qualify for. Obviously you would have to let them run your credit when you decide definitely which lender you are going to chose. You will also want the Good Faith Closing Cost Estimate from the lender too before you proceed. - Fri Jun 6 2008, 11:41

There is no standard percentage. If you had a buyer's agent, they could tell you where to start and negotiate in your behalf. Assuming you don't, what I suggest is your initial offer should be $10,000 to $20,000 below your final offer. This way you can come up if you get a counter offer. Do not worry about over-paying. The house will not appraise for the mortgage if your offer is too high. Their Realtor will discuss this with the seller.

Keep in mind, if you come in too low initially, you will really insult the homeowner, and will not get a counter offer. The seller is not your enemy. Do you want that house or "a deal'? If the homeowner feels they are being taken advantage of, they will not be as cooperative when it comes to future appointments for engineers, termite inspectors, appraisers, etc., and credits at the closing table. - Fri Jun 6 2008, 11:07

I wouldn't recommend a co-op unless you were planning on staying there for a long time as in downsizing, or remaing single, In your case, you would probably want something larger as soon as you start opening your wedding gifts.

You got some good advice in the other comments about going FHA. They do not have the stringent requirements that they had in the past. If you put 3% down, it would give you some money for remodeling. Get yourself a buyers broker, one that has the CBR or ABR designation after their name. They will work in your behalf to get you the best deal and they can give you advice. They help you buy a home, not just sell you a home.

Your buyer's broker might recommend estate sales. These homes have lots of paneling and wallpaper which you have to look past, but are in established neighborhoods. In most cases the sellers has plenty of equity and are more motivated because they are carrying an empty house. The taxes are usually lower too. Once you are in a great location, you have the option to sell or stay and expand in the future

Go to the local home improvement store to get an idea of what it would cost for remodeling. Many people are under the impression from TV shows that it cost much more to improve than it really does. Do you need an entire new kitchen, or can you just reface the cabinets and put on a new countertop? Your local appliance store puts on sale "the package". It includes a stove, refrigerator, dishwasher and microwave in stainless steel from $1400 to $2400.

You definitely want to take advantage of the historically low interest rates that are offered NOW. Once they go up, you'll have to look at cheaper homes. - Tue Apr 29 2008, 14:55