You decided you want to buy an apartment in NYC and are ready to jump right in to the search process. Before you get too excited about your NYC apartment search, it’s important that you get start your mortgage process early by getting a mortgage pre-approval letter first.
If you want to act quickly when you find the right apartment, it’s crucial for buyers to have their mortgage pre-approvals ready to go because it is customary to submit your mortgage pre-approval letter (or pre-qualification letter) and REBNY Financial Statement with your offer to purchase a NYC condo, co-op, townhouse, single-family or multi-family home.
Getting a mortgage pre-approval from a bank or lender prior to searching for your NYC apartment or home helps you in two key ways.
First, it allows you to understand how much you can afford and how much a financial institution is willing to lend to you. This will point you and your real estate in the right direction in refining your search for apartments.
Second, it shows homeowners you are a well-qualified buyer. When evaluating offers to purchase, NYC homeowners want to see that you are can afford the property they are selling. Plus, they want to see that you are serious and that a bank or lender is willing to extend you a mortgage loan (if you are pursuing mortgage financing). Having a pre-approval letter ready puts you at an advantage versus other NYC buyers who may not be as organized, especially if you find yourself in a bidding war.
Obtaining a pre-approval or pre-qualification letter may seem like something that doesn’t need to be done right away, but when you find the one, you want to be ready to move quickly. A delay from waiting for a pre-approval could result in you missing a deal or at the very least slow you down while other competing bids are submitted for the NYC apartment you want.
Also, just because you received a pre-approval from one bank doesn’t mean that you have to use them for the actual mortgage. We encourage all NYC home buyers to shop around to get the best mortgage loan product and lowest mortgage rate to potentially save even more money.
If you have questions, reach out to the Prevu Team or your Prevu real estate agent for some recommendations.
Prevu is the real estate technology company on a mission to save people money when they buy a home. Our industry-leading Smart Buyer™ Rebate makes it possible for homebuyers in NYC to receive a commission rebate of up to 2% of their purchase price with a seamless, end-to-end buying experience and the expert advice of a dedicated, salaried agent.
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