Step 1: Estimate Your Budget - NYC Homebuying with Alex Sung

Step 1of NYC Homebuying is estimating your budget


Before deciding to buy a home you must be prepared for upfront and closing investments. It’s so easy to look at the glamour of real estate, but it is very much hard work and soul searching. Once you choose a residential property, you are locked down to that property as much as 3 years to 30 years; therefore it is important you make the right choice to ensure you’re meeting your goals. Part of this is estimating how much it would take to feasibly purchase your dream home. 

If you’re buying you might expect an initial investment of 2 to 20% in earnest money deposit and down payment to have the seller accept your offer or be preapproved for a mortgage. 

In addition to that, as a buyer you might expect 1.5 to 6% in closing costs.

As a seller, you might expect to pay 8 to 10% in closing costs.

Both of these are important to negotiate our price points, addendums, and closing timeframes with the seller.

With this in mind, you might want to discuss with me what your dream house needs are, and then we can shop for the best ones in the market with the ideal neighborhoods, price points, and value propositions. For example, you might be able to negotiate down the sale price of the home if you are wanting to take out a home loan by offering to cover some of the closing costs for the seller out of your own pocket. This might be a win-win situation if you are only able to cover the loan amount for x amount. This might be a win for the seller in that they are having a better outcome, with lower risk, and a quicker close. 

My goal would be to find the best property with the greatest forward value and present value possible. Or if your goal is to simply live in one house to retire on, we would surely go that route as well. Whatever your goal is, we will explore it in estimating your budget (according to comps, monthly mortgage or housing fees, and etc). We can certainly go a general estimate, whereby if you are still unsure of any financial matters I can refer you to a tax or financial expert for the same. 

Best of wishes in searching for your dream home! 

Step 1: Estimate Your Budget - NYC Homebuying with Alex Sung Step 1: Estimate Your Budget - NYC Homebuying with Alex Sung Reviewed by Alex Sung on July 03, 2021 Rating: 5

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