The big concern is the co-op board. Each co-op has their own guidelines. It is important that you find a realtor that specializes in the area that you wish to purchase an apartment. The realotor can show you the apartments in which the board would approve you.
Even though I was in the mortgage field over 17 years when I bought my co-op, I depended upon my realtor to show me apartments that met my criterias and would approve me. She only had to show me 2 apartments!
One more point I would like to make since I read your response. Why are you working with a broker and not directly with your bank. It does not make sense? Brokers do not control the process nor can they offer you a loan. They can simple arrange a loan. Furthermore the Federal Laws are changing on April 1st, and brokers are going to have an extremely hard time pricing your interest rate to be competitive since all Loan Officers are now going to have a flat compensation plan. What that means essentially is the broker is going to have to charge you twice as much to make any money or make half has much to be competitive.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
You would have your pick from many full one bedroom Coops that would be approximately 700-750sq.ft. and great proximity to the subway for fast and easy Manhattan access. I can show you some great apartments. Keep it in mind and call me any time to set up an appointment. Good luck.
Joseph C. Hastings
Prudential Douglas Elliman Real Estate
It is interesting to read the posts and the answers on Trulia on a Daily basis. I think their is so much to gain from the professionals who monitor these posts and reply to them. Like all advice you have to take a little bit from this source, and sprinkle in a little from others such as a mortgage banker and an attorney. Honestly it is a case by case basis with each Cooperative. Each has its own rules and governing by - laws for financing. I do not think age is a big issue, or that you have been in the workforce for only three years. Yes maybe in a white glove coop, or a coop on Fifth, but generally speaking you seem to have the qualifications. You need to first speak to a banker like myself and get Pre Approved for a mortgage. You would also be best served by interviewing real estate agents who understand your needs and will find listings for you that match your criteria. You can email me directly if you need more personal advice about obtaining a mortage.
Residential Home Funding
First you should contact a lender either a mortgage broker or a mortgage banker. I don't think you should have a problem securing a coop loan. Coop boards are all different. Many use 25% income to debt ratio, some are more liberal and may consider future potential income. A tough board may ask for 1 year of maintenance in an escrow account. You have options. You would qualify for most HDFC coops which are below market rate but because they are limited equity coops you may have to share some of the profits with the coop when you sell. If you find a sponsor unit in a coop there is "No Board" approval.
Manhattan real estate is always a good long term investment. I suggest working with an experienced local buyer's broker.
Mitchell Hall, Associate Broker
The Corcoran Group
You are looking for something that makes sense, the $300,000 apartment that was on the cover of the real estate section of the times ends up being better because of the lower maintenance than the $199,000 apartment with the high maintenance.
The resounding advice is, see a mortgage lender for advice on what you can trully afford. When you have dons a consult and are comfortable with the figure you have both worked out together and will qualify for, start doing a search on what properties and areas your budget will allow.
My website offers the opportunity to search approximately 20,000 exclusive listings, representing the ENTIRE database of residential listings available through the membership of the Real Estate Board of New York (REBNY). It is complete with photos, floor plans and other information a buyer needs; and there is absolutely no obligation. Enjoy!
Licensed Real Estate Salesperson
First of all congrats on being able to have saved so much money so early on. The question here is not can you get a mortgage, because you most likely can. The real question is can you get past a co-op board. The majority of co-op boards want to see a debt to income ratio of 25 % (some allow higher, some want much lower) and they also want to see about 2 years of mortgage and maintenance liquid after purchase (cash, stocks, bond - not 401K). Based on your income you have $1,250 a month to spend and actually less since I dont know what your monthly loan payment is on your student loan. Looking at a $300K coop....you put approximately $150K down to leave you enough for closing and to have enough in the bank after closing to satisfy a co-op....with a maintenance of $600 and an estimated mortgage rate of 4 7/8% your monthly your monthly housing cost would be approximately $1,390. So in this case you most likely would not pass a board.
The good news is that you can get some great studios in NYC for less than $300K. DId you see the article on the front page of the NY times this Sunday?
What you need to do it work with an experienced agent who can recommend a great mortgage broker and can find you the buildings that allow fo a higher debt to income ratio.
Jennifer H. Roberts
Licensed Real Estate Sales Associate
Halstead Property, LLC
view my current listings at jenniferroberts.halstead.com
Usually the rule is: In Manhattan, you will be able to borrow three times your salary.
Anywhere else, you should be able to borrow 4 times your salary. And everything else depends on the rest.
If you need any help, I am connected to more than one great mortgage broker, who can help you figure out exactly how much you can borrow.
I think you are being too hard on yourself. You should meet with a loan/mortgage officer first and I am sure based on the information that you presented that you will have no problem qualifying for a mortgage. Once you meet with a mortgage professional, you will get the exact information that pertains to your financial situation before you begin looking at apartments.
Licensed Real Estate Agent
1408 White Plains Road
Bronx, NY 10462
To me this sounds like a no brainer, with little debt and a high down payment, your debt-to-income ratio should be good enough. Keep in mind most people buying studios are either pied-a-terre's or young professionals, so the co-op boards are aware who they can expect. Your age and length of employment should not be an issue. My suggestion is to contact a mortgage professional and get pre-qualified or pre-approved. Feel free to contact me if you need a recommendation. My contact got my recent customer a commitment letter in 3 days and a clear to close in 2 weeks. Yes, he is that good.
Hope this helps.
BOND New York
Our closing cost guide link below:
Prudential Douglas Elliman
firstname.lastname@example.org 917 312 3240
Thank you, Cecilly Exit Realty