You will need a mortgage pre-qualification or pre-approval letter from a major lender when submitting an offer for an apartment or townhouse. Getting a mortgage 'pre-qualification' letter does not mean you have to use that lender when you have identified the property you intend to buy but it indicates that you are looking in the right price range for your financial situation. A 'pre-approval' letter is even better to have, because it indicates that you have provided a lender with some financial documents and that they have run your credit. A pre-approval letter shows the seller that you are qualified and serious about purchasing the apartment.

Please use a New York City-based lender that is familiar with the type of property that you are planning to purchase (co-op, condo, condop, new development, townhouse, etc). If you have most of your money at one bank, and that bank does loans (Chase, Citibank, HSBC, etc), you may want to go to them first because they may give you a preferred rate to keep your loan in-house. If you work at a financial institution, you should check to see if your company offers an employee discount.

Mortgage brokers will not charge you a fee for a pre-qualification, although there are sometimes fees for pre-approvals. Brokers shop your loan out to numerous banks and find you the best interest rate. The bank pays them a commission.

After you have a signed contract on the property, you will want to go to two or three brokers/lenders in order to make sure you are getting the best rate. Too many inquiries into your credit spread out over more than 2 weeks can hurt your FICO score.

We do not receive a referral fee or kick back for recommending these individuals. I have worked with these lenders before and they have done a great job. I know that if they are on the 'team' the transaction will go smoothly.

Direct Lenders (Mortgage Bankers)

Roli Singh
Mortgage Banker, Wells Fargo
Mobile: (917) 675-0601
Bhairavi.Singh@wellsfargo.com

John Pasquarello
Premier Mortgage Consultant, HSBC Bank
(212) 378-4810 Office
(917) 494-6489 Mobile
(212) 642-4024 Fax
John.m.pasquarello@us.hsbc.com

Mortgage Brokers

Evan Klein
Vice President, WCS Lending, LLC
(212) 351-8031 Office
(973) 886-3657 Mobile
(212) 949-2211 Fax
eklein@wcslending.com

Please note that I do not get 'kickbacks' from recommending these attorneys, it's illegal. I recommend them because I know the transaction will be go really well if they are on our team!

Good New York City real estate attorneys' generally charge a flat fee of $2,000 - $4,000 for a closing (and they are worth every penny!) depending on the price and type of the property. For co-ops/condos, they investigate the building by reviewing the 'offering plan' & building financials, read the board meeting minutes (they often have to go to the management office so use someone close by). For co-ops, condos, and townhouses, they negotiate the contract to ensure that you are protected; assist with title searches/title insurance, etc. For sellers, they ensure that the contract is written in your best interests, and they also hold the buyer's 10% deposit in their escrow account until the closing.

You definitely want a Manhattan/Brooklyn real estate attorney, especially if you are buying a co-op, or the transaction can become a disaster.

You should have your attorney picked out by the time you are ready to submit an offer (or at the time you receive an offer if you are the seller). Having your attorney lined up indicates to the seller that you are a very serious buyer and it makes your offer stronger. And for sellers, it means that once you accept an offer, the contract can go out right away.

You may wish to call each one of the below attorneys and have a short conversation to determine who is the right 'match' for you & to check their rates.

George Kontogiannis
gk@pmarinolaw.com
(917) 968-2880

Greg Maybaum
Greg@GregMaybaum.com
Office (212) 297-6220
Cell (917) 838-1634

Lisa Aguilera del Puerto
ladelpuerto@ladplaw.com
Office (718) 788-2824

If you select a different attorney, please ask a few questions:

What percentage of their overall business is residential real estate vs other types of law? How much of the work will be done by them vs by paralegals? How many days does it generally take them to do their due diligence / issue a contract? If a co-op: Will they be reading condo/co-op minutes at the managing agent's office, or will a paralegal be doing it? Who will be attending the closing (them or someone else from their office?) How many co-op (condo / townhouse) transactions do they do a year?

Christine Toes Muldoon
Licensed Associate Real Estate Broker
The Corcoran Group
917.608.6973 / ctoes@corcoran.com

Closing Costs Condos PDF

Closing Costs Co-ops PDF

• 20 – 35 days prior to move in date

• Employment/Offer Letter, 3 months bank & financial statements, 2 years tax returns w/W-2s, Landlord Reference Letter, Photo I.D., Soc. Sec. Card or Passport, 3 pay stubs
• Parents ("Guarantor") will need to provide the same paperwork
• If you don't want to provide tax returns sometimes a letter from a CPA will work
• $50 – $75/person credit check; ~$300 deposit (refundable if you are not approved)

• You: 40 – 50 x monthly rent (can combine incomes)
• Guarantor: 80 – 100 x monthly rent (1 or 2 Guarantors only, must be US residents)
• Good credit (over 700)
• Within 24 hours of approval, be prepared to sign leases & provide the 1st month’s rent, 1 or 2 month’s security deposit, & fee for service in certified funds
• You will want to have a local bank account, landlords will not take personal checks
• If you do not make 40-45 times rent and do not have a guarantor, you will need to pay additional rent up-front or additional security, usually 3-6 months’ rent

• Some landlords are paying the broker's fees, generally in areas with the most inventory (i.e. Upper East Side), so we can show you apartments that do not have a brokers fee.
• Fee is between $0 and 15% of the first year's rent. You do not pay this each year.
• "No fee" apartments make up ~ 10% of the market, depending on the neighborhood, so you are significantly limiting your options by pursuing only "no-fee" options
• Apartments with a fee are usually nicer than apartments with no fee, it is best to keep your options open! Perhaps look at $3000/month apts with a fee, $3300/month with no fee)

• Craigslist
• Warning: Many brokers on Craigslist are advertising apartments that are rented or do not exist or they will show you apartments way over your budget. If it sounds too good to be true, it is!
• NY Times
• Streeteasy
• If there is ONE time you should use a broker it is for your first move to NYC. If you don't know the neighborhoods, reputable landlords, subway, etc, and are pressed for time, using a broker makes the process MUCH easier
• We can line up 6-10 appointments for you in a row in one day (please note that it takes hours to arrange keys, call supers and management companies, set up appointments with other brokers, etc, so please be prompt)

• The summer is the busiest time to rent an apartment; have all your paperwork
• Rents are flat from last year
• Take notes on each apt – write down the address!
• All roommates should be there
• Plan to be in NYC for 3-5 days. Some apartments have NO weekend access, so at least one day should be a week day
• If it sounds too good to be true, it probably is! A legal bedroom is supposed to have a window and a closet
• "Winged bedrooms" = two bedrooms with almost NO living room
• Doorman vs non-doorman – this is really more of a convenience issue (dry cleaning/packages) than a safety issue – it may not be worth the extra expense for you
• Having a pet reduces the # of apartments you can rent
• Some buildings allow temporary walls, which are approx $1,000. (The Wall Company or Living Spaces are two popular companies for temporary walls)
• Look at 5 – 10 apartments & pick the best one
• Apply for 2-3 apartments because the good ones go very fast & you may be competing against more qualified applicants