It always feels special when you are buying your first home. The excitement and euphoria you feel when you buy your first property is unprecedented. As 2023 is a sellers’ market for Long Island, it is important for buyers like you to be cautious and take the necessary steps so that you can buy your dream home at the best bang for the buck. There is a low inventory in comparison to the number of buyers for Long Island real estates. In this blog we’ll discuss 6 crucial steps that you should take to buy a Long Island apartment.
6 Easy But Crucial Steps to Have the Best Real Estate Buying Journey
Finding a home by yourself isn’t a walk in the park. Unless you have a lot of experience, you might find it difficult to traverse the path of purchasing a nice property at the right price. Although it can become tricky, you’re not all lost. We’re here to guide you through your real estate buying journey so that you have a seamless and hassle-free experience.
Check and Keep Track of Your Finances
First things first. There are a few financial calculations that you have to do. Firstly, make a budget i.e., find out the amount of money you can spend on buying real estate in Searingtown or in other parts of Long Island. Find out the amount of mortgage you’d be comfortable to dish out every month/ year. Also, make certain that your credit history is good. Great credit score will help you to bag a lower interest rate. Additionally, always keep your debt-to-income ratio less than 36%.
Make a Downpayment Plan
As a buyer, keep in mind that you might have to pay a hefty down payment. Usually the down payment amount is around 20%. Act prudently to save that much amount of money. Depending on the kind of mortgage you choose, the typical down payment for a home varies. If you make a smaller down payment, your lender can insist that you get private mortgage insurance.
Make Sure You Get a Pre-approval for Mortgage
When you engage with lenders to finance a home, a pre-approval letter demonstrates your seriousness as a buyer. This commitment letter will put you in a better position than the other buyers. You can opt for one of the 4 types of loans – FHA, VA, USDA or conventional. Based on your credit score, income, the place you live in and many more things, you can choose your loan type. FHA loans are for those who have lower credit scores or if their debt-to-income ratio is high. VA loans are for veterans; you don’t have to do any down payment if you are a veteran and opt for VA loans. If your income is on the lower side and if your residence is not in the urban areas then opt for USDA loans. For conventional ones, you’ll need to give a down payment, have a credit score, pay an interest rate for the mortgage etc.
Find Your Preferred Neighbourhood & a Reputable Realtor
It’s one of the most imperative factors to consider while buying real estate in Huntington, NY or in other parts of Long Island. You don’t want to stay in a locality that has huge levels of violent and property crimes. Also, consider a locality that is well connected to the main city and has all the amenities like schools, hospitals, airports etc. To find out the best properties in Nassau, Suffolk and Queens County, hire a reputable realtor like Pawa Realtor who will do property assessments, along with providing the most accurate selling estimates. Contact us right now.
Do Home Inspections
Although most states don’t mandate an inspection until the house is under contract, New York State law mandates that one must take place once an offer is accepted. Budget $350 to $500 for a thorough examination. Even if there is an upfront fee, there will be future cost savings and less worry. Undiscovered problems including leaks, structural damage, and termite are not what you want at a later stage.
Close the Sale
Make a reasonable offer that can be at least considered by the property owner. Hear their counter offer, negotiate and close the deal. It is not possible to determine specific closing costs as a lot of factors come into play. A Woodbury Realtor or a realtor from any other area in Long Island can help you close the deal.
Plan your closing costs as well as down payment ahead of time. Similarly, pay your bills on time to maintain a high credit score. Follow these actionable steps to make your buying journey a memorable experience.