Getting started

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Working closely With Your NYCVertical Agent

Before you start the buying process it is crucial that you understand the difference between the various types of property ownership in NYC. These types are Cooperative, Condominium, Cond-op, and Townhouse. Please read the term glossary at the end of this guide in order to understand each of these ownership types.

Obtain written pre-approval for a loan. Most home buyers know they should get a mortgage pre-approval letter from a lender before they begin seriously shopping for a home. But the reasons for this advice aren't always clear, and buyers sometimes are dismayed by the amount of paperwork involved. Here is some of the reasoning behind the advice:

A pre-approval letter is more reliable than a pre-qualification letter. Unlike getting a pre-qualification letter which is easy, a pre-approval letter involves in-depth information verification. The lender will ask for documentation to confirm your employment, the source of your down payment and other aspects of your financial circumstances. Although a pre-approval is more time-consuming, the additional due diligence is exactly why the pre-approval carries more weight.

You'll know how much money you can qualify to borrow. Most home buyers have a rough idea of how much they would feel comfortable paying every month on their mortgage. And it might turn out that you are not qualified to borrow as much as you think you should be able to borrow, depending on your income, your debts and your credit history.

You'll gain a more powerful negotiation position when dealing with the seller, because sellers usually prefer to negotiate with pre-approved buyers. You'll feel more confident about making an offer with a pre-approval letter in hand and the knowledge that you'll be able to obtain a mortgage.

A pre-approval letter shows your real estate agent that you're a well-qualified buyer who is serious about purchasing a home. The increased likelihood of a closed sale will naturally motivate your agent to devote more time and energy to you.

Choosing a lender is largely a matter of finding the best terms available. Always check with several different lenders because interest rates, up-front fees and the variety of loans offered can vary even among local sources. Lenders should be willing to give you this information over the telephone. In addition, many local newspapers occasionally print tables comparing the terms of several local lenders. It is also a good idea to get references from acquaintances and your broker because lenders may vary in how well they handle loan approvals.


Choose an Attorney. Personal referrals can be an excellent source for finding a real estate attorney. We recommend that you choose a Manhattan attorney that specializes in NYC real estate law. He/she will be important when you have signed a purchase contract. Your attorney will review the entire contract and will give you the opportunity to make certain changes, if necessary. These changes will need to be made during what is called the "Attorney Review Period". An attorney will also attend your closing and help you go through the Lender's closing documents, review the Title Report and also help you through the Seller's closing documents.

Find Your New Home. The common deposit for a sale contract is 10%, so be prepared to poses liquid funds when starting the process. The balance of the down payment will be due upon closing.
In certain forms of ownership, offers are only accepted based on your financial strength and not on price. Therefore, be prepared to have your net worth statement with substantiating documentation like bank statements, brokerage statements & other financial documentation. Also, don't forget to review your credit report. Remove all disputed claims and clear up any debt if possible, especially outstanding credit card balances.