Purchasing a home is a huge milestone for many. Buying a house is an investment that should not be taken lightly. If you are looking to purchase a new home in New York, continue reading to discover the top tips to consider.
- Buy for the Long Run: A home is an investment. It is important to assume that you will be living in this home for a least five years when you are considering buying. Most Americans who sold their home within the last year had lived there for at least a decade.
- Set a Budget: It can be all too easy to go over budget in a competitive market. Setting an attainable budget will ensure that you are being realistic about what you can afford and how you can compromise to meet this budget when necessary.
- Strive for a 20% Down Payment: It is best to be able to afford a 20% down payment to avoid paying a premium. A higher down payment also reduces your financial risk.
- Maintain a 6 Month Strategic Reserve: It is important that you set up a strategic reserve separate from a normal bank account to cover about six months of living expenses when you are purchasing a home. This is a precaution in the event that you face unexpected expenses, lose a job, or get sick or injured. This reserve will prevent financial hardship.
- Get Pre-Approved: Getting pre-approved shows sellers that you are a reliable buyer with a good financial standing. Organize paperwork documenting your income, credit, and debt to do so.
- Shop Around for a Mortgage: Home loans do not always suit your circumstances. This is why there are different types of mortgages. It is important that you shop around for one that is best for you and your financial plan.
- Don’t Spend More than a Third of Your Income: A good rule of thumb is to spend about one-third of your after-tax income on a home.
- Do Not Be Afraid to Walk Away: Manage your expectations and make sure they are met before closing on a deal. Do not be afraid to walk away from a deal that does not benefit you.
If you require assistance with any real estate matters, do not hesitate to contact our New York City real estate attorneys. Our legal team will walk you through the steps ahead. Give our firm a call today to schedule your initial consultation.
Contact Our Firm
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.