I recently started working with a new buyer and wanted to prepare her for viewings. I have come to realize that providing timely information upfront in the buying process builds trust between myself and my customers. This process also prepares my buyer for an anticipated offer if she wishes to move forward on a particular listing. In order to de-mystify the buying process, I sent her an email which outlined these steps.
Here is the list:
Pre-approval for a Mortgage
1) It's always good to check to see if a particular seller has a preferred mortgage lender and if so, to pass along this information to the seller.
2) The pre-approval process usually takes only 24 - 48 hrs.
3) Most pre- approval letters expire after 60 to 90 days.
NYS Agency and Fair Housing Disclosure Forms 1) NYS Agency Disclosure Form. This document clearly explains my professional responsibilities as a buyer's agent. 2) Fair Housing disclosures. This document explains that I understand and abide by Fair Housing laws. This form also outlines the steps for a customer to make a complaint regarding alleged violations of Fair Housing Law.
Making an Offer 1) Purchase Price: Total Down Payment Percentage: ____ % 2) Preferred Closing Time Frame: ________ 3) Is the offer contingent upon financing? 4) Is the offer contingent upon appraisal? The following documents to be included with the offer: 1) Mortgage pre-approval letter. 2) Bank statement showing buyer's name and proof of funds for down payment.
General Outline for Closing Costs
Condo Buyer Closing Costs: ALL ARE APPROXIMATE
Mansion Tax: 1% (applies to condos over $1M) final sale price example: 1% of $1,449,000 = $14,490
Title Insurance - example: .5% x $1,449,000 (includes parking space) = $7,245
Mortgage Insurance - none with 20% down
Buyer’s Attorney - $2,500 approx.
Move-In Deposit/Board application - $1,000 approx.
Transfer Tax - Depending on market conditions, buyer may pay zero, part, or all of the transfer tax for New Development - NYC 1.425% + NYS .4% OF CONDO SALE PRICE above $500K. (can be negotiable between buyer and seller.)
For NYC Buyers Seeking Financing: ALL COSTS AND EXAMPLES ARE APPROXIMATE
Mortgage Recording Tax - 1.925% for mortgage amounts over $500K
Bank Attorney Fee - $750
Bank Loan Origination Fee - $750
Appraisal - $450
Mortgage Application & Processing Fee - $500
Credit Report & Employment Verification - $100
Title Search & Recording Fees - $1,000
Additional ONE time fees: case by case
In my next post, I will cover all the steps that my buyer will take from offer acceptance to the closing. Stay tuned!
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