Revealed: Even Mortgage Sellers Are Waiting for Buyers to Buy Their Properties in NYC
We’ve all heard how the mortgage rates are increasing since the start of the year. As these rates increase, the American’s purchasing power to acquire a house has been dwindling as the time passes by. Headlines of how most New Yorkers are switching to renting trather than pay a hefty amount in mortgages are dominating the internet.
In fact, purchasing your first home in New York City has never been this difficult. Every property seems to be too expensive for most to afford. But did you know the mortgage sellers and investors are suffering too? In fact, even the cheapest homes in NYC are still patiently waiting for their buyers.
The Million-Dollar Listings
According to StreetEasy, the listings of sub-$1 million apartments increased up to 27% in June at 3,087, compared to the previous listings of the same month since 2013 in Manhattan. While in Brooklyn, such listings increased up to 17% at 2,798 and 6% at 2,314 in Queens.
Even with these updated listings, most mortgage sellers suffer a drop in their sales rates since buyers tend to be picky nowadays. In fact, they take the time to shop around and canvas on NY properties to find the best deal, and that’s if they make a purchase at all. According to the data, both Brooklyn and Queens have the largest number of available homes since 2008. Meanwhile, the total inventory in Manhattan didn’t score this high since 2011.
According to Long, another surge of mortgage listings is expected in September. He also said this is where most homeowners expect to sell most of their properties. However, if the purchases and sales rate won’t go up and level the supply before then, it’ll eventually push the inventory levels higher than the city has ever seen. Long also added that unless sales start to pick up, the mortgage prices won’t lower down.
Tips for First-time Buyers
Before you plan to purchase your first home property in New York, here are the things you should prepare to allow a smooth transaction.
Save for the Down Payment.
According to financial experts, you should save at least 20% downpayment to process your mortgage application. For example, you need savings of at least $100,000 for down payment if you want to buy an apartment worth $500,000. Preparing this money will send a message to the sellers that you’re seriously considering on buying the property. Aside from the down payment, you should be prepared to pay for other costs too like the mansion tax. Here are the rough estimates of other fees you need to pay:
- board package fee (ranging from $500-$2,000)
- the appraisal ($300-1,500)
- op lien search fee ($300)
- condo municipal search ($350-$500)
Clean Your Credit Score
If you’re aiming to purchase a house, chances are, you’ll have to do it through a loan. Most New Yorkers prefer to loan a house or apartment simply because it’s easier to pay it in installments instead of bulk cash. That’s why you need to take care of your credit score if you want your application to be approved.
Also known as the FICO score, it calculates the potential risk of lending to the applicants. The higher your score is, the better credit score you’ll have. As much as possible, aim for a score ranging from 300-850 points. Oftentimes, you also enjoy some perks like lower mortgage rates or be exempted from paying other fees if you have a good credit score.
Once you already have a budget and have a good credit standing, you can start searching for your prospective property to buy. Websites and apps like Trulia and StreetEasy make it easier for you to find the perfect property according to your preference or budget.
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