Posted by Dan Silva on January 08, 2004 at 12:46:52:
You should first contact a bank/lender for a prequalification, unless you know your credit score range. If your credit is in good standing you will be in an excellent position. You could do 100% financing of the home and all you would have to bring to the table is the closing costs, taxes, etc… which should run you $2,000 - $5,000, depending on how much taxes and insurance cost. Your best bet is to put about 5% down and you should have enough left over for closing costs. You will be paying private mortgage insurance on anything less than 20% down, this is a monthly fee that covers the lender.
You should shop around for the best rates and fees, I know you are not looking for a broker but some of them are eating all the closing costs right now in order to get deals done. (They still make money when they eat the costs but not your money). You have a 2 week period to apply to several banks/lenders in which it will not directly affect your credit score, if you spread it out in more than a 2 week period than too many inquiries will start to weigh on you score a little.
-Hope this helps
Posted by Amanda NY on January 07, 2004 at 20:14:49:
Friend of mine who used to live co-op called me if I am interested in owing the co-op. According to my friend, owner who lives in California would like to sell the co-op (which is in NY) without using any brokers. This owner mentioned my friend if he wanted to buy since he rented the apartment for four years. However, he recently married and have purchased house and no longer interested in owing this apartment. So he asked my if I am interested. I said YES since the price is reasonable and location is good etc…When I first saw the apartment I felt I really wanted! (currently I live about 5 miles from the apartment and know the area very well)
His asking price is about $70,000. Although, this is reasonable price, I can’t pay cash. It looks like the owner would like to get rid of this apartment as soon as possible. I am thinking to pay between $5,000 and $10,000 cash as an downpayment. I also asume that I have to pay all leagal fee such as title change, closing cost etc…
Could you tell me what should I do first? Should I go to my bank to ask loan first?
I am really new to do these things and don’t want to end up to pay too much. If anyone who purchase property without brokers, please let me know what to do first.