With the subsidence of the epidemic in 2021, the real estate market in New York has risen strongly. More and more young people and international students are starting to consider choosing their own houses in New York. Whether you want to settle down in New York for a long time or consider investing. The process of taking out a loan to sell a home in New York has many complicated parts that you must understand before making a decision! Well, today, Acre million-dollar real estate agent Cathy and another Acre star agent Matt jointly launched a Q&A on the process of buying a home loan in New York to answer questions, hurry up and read it!
What is the process of buying a home in New York?
When you decide to buy a house, you first need to evaluate your comprehensive house-buying ability, your own cash reserves, your own loan ability, and your loan repayment ability. Which house is suitable for you? In which area is it more affordable for you? It is more important to note that a series of expenses (furniture, property tax, property fee) after purchasing a house also need to be taken into account
2. Loan pre-approval:
After a clear assessment of yourself, with a clear positioning, you can You can consult your own bank to apply for loan pre-approval to know how much you can borrow. This is also the most accurate step to determine your purchasing power! As for how to apply for loan pre-approval with the bank, don’t worry! Next we will focus on it!
3. Room selection:
Real estate agents are really essential when looking for a house to buy a house! A suitable real estate agent not only recommends exclusive housing, but also saves you more time in choosing the type of apartment. The agent will help you in a formal and efficient way with all problems in the process of buying a house and legal procedures. solve. During the house inspection and selection stage, the real estate agent will show you the house on the spot, and provide you with information about the building facilities, nearby commuting and living information, so that you can have an advance prediction of your life after buying a house! As for who to choose as a real estate agent? That said, of course, it is a reliable and responsible Acre!
4. Make an offer:
When you find the house you like, you can make an offer and get it. It should be noted that making an offer is a process of repeatedly negotiating with the seller to get the best price. At this time, the advantage of your broker can reflect that Acre’s broker will professionally evaluate the market situation and determine the best price. Go and make an offer with the selling broker!
5. Sign the contract and pay the deposit (deposit):
First, the selling lawyer will send your agent the contract you need to sign, and you can sign it after checking with your lawyer! As for the relationship between the deposit and the loan, we will talk about it later!
Closing is the time to move into your new home! Usually, the building you live in at this time may have some check-in and moving terms that you need to pay attention to!
How to open a loan pre-approval letter?
The full name of the loan pre-approval letter is Pre Approval Letter. How to open this letter? If you have a formal full-time job and are in W2, then go to the bank of your main account to apply for a pre-approval letter directly. However, when opening a pre-approval letter, you must ensure that you have 10% of the down payment amount in your bank account. For example, if you want to buy a house for 1 million, then you need 100,000 in the bank. Conditions may vary slightly if you are not working, but the basics are the same.
How many types of loans does the bank have?
The most common loan options for home buyers are: 15-year fixed loan, 30-year fixed loan, first 5-year and first 10-year fixed-late floating loan. So how do you choose which loan to choose based on your financial situation?
When should the loan application start?
The official need to apply for a loan can start only after the signing of the contract becomes effective. The process of a loan is about 45-60 days.
What is the difference between a loan for an international student and a loan for a normal working person?
First, many major New York banks do not accept student loans. During the loan process, down payment and at least 50% of the down payment is required to apply for a loan. The second is because big banks like Chase and BOA (Bank of America) do not lend to international students. However, if you use your OPT at Citi Bank, and any bank can apply for a loan using an H1B work visa.
However, if you are only F-1 student, you need to choose a bank that does not check income and does not check credit to apply for a loan. Such as Huamei, Cathay Pacific, Metro City and other banks.
Moreover, there is a difference between international students and people who work normally in terms of interest rates. The interest rate of people who work normally is better, about 2.8, while the loan for international students is between and 4.5 4.3.
Loan process time?
From the application and submission of materials, relevant information to the final approval 45-60 days. Now, because of the epidemic, banks are busy, and sometimes it takes about 90 days. This is mainly because of the efficiency of the banking department and the property rights investigation, and the material review will take a long time.
What does New York do in the loan process?
In the personal materials section, you need to submit your personal identity, personal work, tax returns and some supplementary materials. For international students, you need to provide identity materials and financial proof documents. When these documents are reviewed by the bank, a valuation report will be Appraisal report
Appraisal Report Key:
Appraisal Report is because when the bank lends you the amount, it is not based on the Listing Price of your house, but based on the value obtained by valuing your house. Whether the house can be estimated in the valuation report is directly related to the final loan amount you receive.
The valuation report process takes about 2 weeks, after which the bank will review your identity materials and income materials and give you a Commitment Letter. (Confirmation letter for loan) At this point, your loan is basically no problem and you can prepare to transfer it! After that, your lawyer (buyer’s lawyer), seller’s lawyer and bank’s lawyer will set a closing from getting the Commitment Letter to closing day it usually takes two weeks.
Loan failure protection clause?
Generally, real estate agents will add a clause called loan protection to the contract during the process of negotiating the price of the house. Generally, it is 30-45 days of loan protection. If the Commitment Letter, that is, the loan fails, You can apply to the seller for an unconditional refund of all deposits. But what if Commitment letter exceeds the protection period? Then you can ask your lawyer to apply for an extension of loan protection, but generally you can only apply for one loan repayment. Is there a penalty? Early repayment of loan products in most banks in the United States no penalties for. Everyone can repay the loan early with peace of mind, but the specific matters still need to be communicated with the bank or the Loan Officer before they can be determined.
So this is all the questions and answers about the New York loan home purchase process today! If you can gain something for those who buy a house in New York, you can pay attention to the Acre design media platform! We will often push real estate consultation, selling and selling houses, renting and living in New York dry goods, and also hold various welfare activities from time to time. Welcome everyone to participate!