Q: I am Canadian living in Canada and one day I would like to buy a small apartment in NYC. Besides the down payment, which I am assuming is 20%, what do I need to have to make this happen? Thanks.
A: This is a wonderful time to consider purchasing in New York City, as there are many opportunities in the studio and one-bedroom market.
For Non-US citizens, a condominium would be the best option, as the requirements for purchase on this type of property are more flexible. Only 10% is due at contract signing, and the balance is due at closing. In order to make your purchase, you will also need to line up reference letters from people such as your employer and personal friends, which will be included in the paperwork.
Establishing banking relationships in the United States, including with a Mortgage Lender, is most important. If you would like us to refer you to a professional at DE Capital Mortgage, we would be happy to do so. Additionally, real estate practices and procedures may differ from those to which you are accustomed, so consulting with a United State Real Estate Attorney who is familiar with Canadian requirements might also be a good first step.
Another good idea is to begin looking into your credit scores so that you’ll be ready for loan approval by the time you actually begin shopping for an apartment. On the credit side of loan approval, you should check your FICO score and credit profile with Trans Union, Experian, and Equifax, the three major credit bureaus that bankers will review once you apply for a loan. Low scores may mean that you won’t be approved for funding, or that you may have to pay higher rates and fees. You can purchase reports from Trans Union and Equifax plus the FICO score that represents each at www.myfico.com, and you can pull a free copy of your Experian report at www.annualcreditreport.com.
