Buying a home in New YorkAlthough many states don’t require attorneys as part of a real estate transaction, in New York it is customary for both sides of the transaction to provide their own counsel. The seller’s attorney will typically prepare an outline of the contract of sale. The buyer’s attorney will then add or remove items as he or she sees fit. At the end of negotiations, the buyer and seller will sign the contract, and the buyer will send a down payment. That may be forfeited if the buyer decides not to go ahead with the purchase. After the signing of the contract, the buyer’s attorney will:
- Order a title report (to check for any issues that may need resolving)
- Ease the process of supplying information to the mortgage lender
- Inform the buyer of the total amounts payable on closing
- Represent the buyer at the closing in order to advise on the documents being signed (deed, transfer tax returns and mortgage documents), and to ensure all payments are accurate.
Co-opsOf course, in New York, buying a house or renting an apartment aren't the only living arrangements. Co-ops (housing cooperatives) can provide an interesting alternative. When buying into a co-op, a corporation owns the property, and you become a shareholder in that corporation. As such, you are entitled to the exclusive use of a housing unit within that property. So you’ll want to make sure you fully understand how the co-op you’re buying into works. This includes:
- How it is managed
- What the buyer will be required to pay for and how much that payment will be
- Whether there’s any underlying mortgage
- What restrictions there are on making changes to your residence
- The health or otherwise of the coop’s finances
Refinancing a home in New YorkIf you live in the state of New York, then refinancing your home doesn’t have to cost an arm and a leg. New Yorkers are able to use a Consolidation, Extension and Modification Agreement (CEMA), which is exclusive to the state. Basically, a CEMA loan is an arrangement between the original lender and the new lender to combine two or more loans into a new consolidated one. A CEMA loan is designed to save money for homeowners attempting to refinance. They pay taxes only on the amount that exceeds their current mortgage balance. Before you start the CEMA process, you should take guidance from a professional with relevant expertise to work out whether or not you qualify for the program. And you can determine whether CEMA is the best option for you. Even though CEMA is designed to save the client money, both lenders and their attorneys will likely charge fees. These vary and you’ll want to know precisely how much they’ll be before you get too far into the process.
First time home buyers in NYThe State of New York Mortgage Agency (SONYMA) has special loan programs for first time home buyers in NY. These loans let you buy a house in New York with as little as 3% down and potentially lower interest rates than other first-time home buyer mortgages. New York’s first time home buyer programs can also be combined with down payment assistance from SONYMA. This is not a grant, but rather an interest-free loan to help with your down payment and/or closing costs. It can provide up to 3% of the purchase price, and if you don’t move, the loan is forgiven after 10 years. First time home buyers in NY might qualify for other loans or down payment assistance programs, too. But these vary by area, so make sure you research local and nationwide options.
Mortgage calculator: New YorkCalculate your mortgage payment for a home in New York. Start by finding your current mortgage rate using the filters above. Then enter your rate, home price, down payment, and loan term into the mortgage calculator below to estimate your monthly payment.
Mortgage companies in New YorkTo find the best mortgage rates in New York, you need to compare offers from at least three mortgage companies. Try starting with the most popular lenders in the state: Wells Fargo, Chase Bank, Citibank, Quicken Loans, and Bank of America, according to ValuePenguin. You can check our reviews to see how these major lenders compare for mortgage rates and service:
- The Best Mortgage Companies for 2022
- The Best Refinance Companies for 2022
- Individual Mortgage Lender Reviews