First consult with a mortgage broker or banker to determine how much of a mortgage you qualify for. Calculate the estimated mortgage payment plus monthly maintenance (coop), common charges and real estate taxes (condo).
Several formulas exist to help determine how much a lender will allow a consumer to borrow. One of the more accurate formulas is a front- and back-end ratio. It states that the buyer can afford as much as 28 percent of his or her gross-monthly income toward the monthly mortgage payment, assuming that the consumer's other debt payments (credit cards, car loans, student loans, etc...) are less than or equal to 8 percent of his or her gross-monthly income. A coop will usually want your total housing costs to not be more than 25% of your monthly income. (income to debt ratio)
Understanding your financing needs before you search for a new home will help you move ahead quickly and confidently when you find the right apartment.
Currently we are at record low interest rates. The same amount of monthly payment now buys almost TWICE the dollar amount of mortgage than it did just 5 years ago. (ie $1000 a month now gets you a loan of $220,000 where as in 2006 it would get you a loan of about $150,000).
Rental vacancy rates are now below 1% and the average rent in Manhattan just hit an all-time high up 13% from 2008. Its hard to find a rental apartment now and your monthly cost has risen significant. This makes buying more appealing and we are seeing a big pick up in studios and 1 bedrooms where buyers were initially looking to rent but have figured out that buying is much less expensive.
Iâ€™m very happy to talk with you about the Real Estate process and can discuss the opportunities on the UES.
Here is a blog I wrote titled: How much apartment can you afford?
Mitchell Hall, Associate Broker
The Corcoran Group
A lot will depend on your credit report. Most coops require at least a 720 FICO. Also you have to include your debt into the figures of what you can spend. You need to speak to a mortgage officer to go over the figures before you find a realtor.
NYS Associate Broker
Keller Williams Landmark II
Serving Queens, Nassau and Brooklyn
Condos are also an option and the debt to income ratio wont matter so much to the building - it's up to your bank how much they'll lend. THe issue with condos is higher closing costs which on a $500K purchase with a $400K loan can be over $10,000.
Please call me at 917-376-1648 of you would like to discuss more of the specifics
Charlie Summers, Bellmarc Realty firstname.lastname@example.org
Your loan amount will depend on many factors. It is best to seek out a lender and become pre-approved. JPM Chase gives you 1% cash back if you have a checking account with them and obtain a mortgage through them. That is huge as after you spend all your money on your first place you can get a little cash back for decorating! I work with a mortgage lender there that will happily assist you.
You will want to work with a broker to better understand how the market in New York works as it is different from any other in the world. There are many differences between buying a Condo and buying a Co-op. (You were provided with some great links to help build a solid understanding).
When you are ready please feel free to give me a call and we can get started with the steps you will need to take in order to buy your first home.
Bond New York
Here is some information that will help save you some money in purchasing a Manhattan apartment and get the best interest rate.
Once they have helped formulate what the maximum amount is what you can afford, you will want to see if you fall into the condo or co-op type of ownership.
You can read more about the difference between a co-op and condo ownership here.
You now have 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).
These are the most accurate listings you can find in NY because they come from the brokers themselves; there is no bait and switch, no duplicates, and no opens; and are updated every hour.
When you are ready to purchase, my contact information is listed below or you can find it on my website.
SVP/ Associate Broker
Rutenberg Realty NYC
The first step in the buying process is to get pre-qualified by a lender. This serves two purposes. One is exactly what you are asking, which is how much you can afford. By knowing what a bank, under their current guidelines (which keep changing) is willing to lend you, you will know what you can afford. The other reason this is so important is that when you and your agent (we'll get back to that part) are ready to put in an offer on a property, the agent for the seller will want to see your prequalification letter before they will take your offer seriously. They need to know you have the means to complete the transaction before they will allow their seller to take it off the market for you.
Equally important is to make sure you use a skilled, experienced buyer's agent. We can streamline your search, negotiate on your behalf, and take you through all the steps to closing. Sellers have an agent, and so should you. It levels the playing field.
Halstead Property, LLC
http://jenetlevy.halstead.com for all NYC listings
With $500K as your intended purchase price budget, you can most assuredly afford a lovely one bedroom unit. Inventory is good on the Upper east, and the best deals are to be found there.
Please contact LEISA ARAS at email@example.com. Or if you prefer, please send me your contact information and we will contact you instead.
LG Fairmont Group