Ask Elliman http://ask.elliman.com Tue, 15 May 2012 17:40:15 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 I just moved to NYC from outside of the United States, so I don’t have American credit. How can I build my credit so that I can buy a co-op or condo in NYC within the next two years? http://ask.elliman.com/2012/05/15/i-just-moved-to-nyc-from-outside-of-the-united-states-so-i-dont-have-american-credit-how-can-i-build-my-credit-so-that-i-can-buy-a-co-op-or-condo-in-nyc-within-the-next-two-years/?utm_source=rss&utm_medium=rss&utm_campaign=i-just-moved-to-nyc-from-outside-of-the-united-states-so-i-dont-have-american-credit-how-can-i-build-my-credit-so-that-i-can-buy-a-co-op-or-condo-in-nyc-within-the-next-two-years http://ask.elliman.com/2012/05/15/i-just-moved-to-nyc-from-outside-of-the-united-states-so-i-dont-have-american-credit-how-can-i-build-my-credit-so-that-i-can-buy-a-co-op-or-condo-in-nyc-within-the-next-two-years/#comments Tue, 15 May 2012 17:40:15 +0000 tbecker http://ask.elliman.com/?p=1028 Read More.]]> Q: I just moved to NYC/the U.S. and it seems I have pretty much no American credit.  I am planning on buying a co-op or condo in NYC within the next two years. How can I build credit with a purchase in mind?

A: This is an excellent question and it is great that you have given yourself a few years to build credit. Getting a secured credit card is a good way to begin building credit when you don’t have any. There are many sites that offer credit cards for all types of consumers with varied credit histories. You can go to credit.com or creditcards.com and find the cards that will approve someone with NO credit history. Once you read the terms, decide to apply, and get your credit card, you can begin to use it. Try to keep your balances low and pay them off over a period of 3-5 months; showing an excellent payment pattern will certainly help.

See if you have any family or friends in the U.S. who have excellent 7 to 20-year-old credit, keep low balances, and always make timely payments.  If you trust them and they are willing to add you on as an authorized user, this can be a great plus that will help you build your own credit. The older the credit, the better it will be for your scores.  Being an authorized user will afford you the benefit of the old credit within 3-6 months, but you will not be responsible for the debt or account.

Once you have these two cards showing up on your credit, you can apply for a third card based on your current credit score. Buying your Fico score will not hurt your credit. Go back to the site that offers credit cards and apply for a regular card (use your current credit score category to pick the best card offer). The credit card sites offer cards based on score category as well.

Once you have 2-4 credit trade lines on your credit report, you will be
in a much better position.  Try to get all these cards within the first year so that you will have the second year to allow them to season. Remember, opening and closing credit can have a negative effect on credit scores. Once you have good credit scores, you want to be careful and strategic about deciding to open or close credit. For more educational credit information, you can go to North Shore Advisory, Inc site.

]]> http://ask.elliman.com/2012/05/15/i-just-moved-to-nyc-from-outside-of-the-united-states-so-i-dont-have-american-credit-how-can-i-build-my-credit-so-that-i-can-buy-a-co-op-or-condo-in-nyc-within-the-next-two-years/feed/ 0 Is the 20% down payment for a co-op negotiable or a solid requirement? http://ask.elliman.com/2012/05/11/is-the-20-down-payment-for-a-co-op-negotiable-or-a-solid-requirement/?utm_source=rss&utm_medium=rss&utm_campaign=is-the-20-down-payment-for-a-co-op-negotiable-or-a-solid-requirement http://ask.elliman.com/2012/05/11/is-the-20-down-payment-for-a-co-op-negotiable-or-a-solid-requirement/#comments Fri, 11 May 2012 15:14:56 +0000 dherman http://ask.elliman.com/?p=1023 Read More.]]> Q: I’m looking for an apartment in Manhattan. I’ve pre-qualified for a mortgage, and have a steady income to afford what I’m looking for, but I’ve only been working for a few years and thus don’t have enough saved for a 20% down payment. When co-ops say that they require 20% down, is that generally a solid requirement or can it be negotiated?

A: The maximum allowable financing that a co-operative will allow is non-negotiable. Many first time buyers will consider remedies such as a gift or loan from a family member to assist them with overcoming this important financial threshold in the purchase process. In today’s marketplace, many condominiums will require 20% as well. Working with an experienced real estate professional can help you find properties to consider that are within your budget. If you would like to speak with one of our agents or a mortgage loan officer, we would be happy to assist you.

]]> http://ask.elliman.com/2012/05/11/is-the-20-down-payment-for-a-co-op-negotiable-or-a-solid-requirement/feed/ 0 I’m a California-based high school student, and want to move to New York to work at a real estate firm after I graduate. What should I do in the mean time? http://ask.elliman.com/2012/05/11/im-a-california-based-high-school-student-and-want-to-move-to-new-york-to-work-at-a-real-estate-firm-after-i-graduate-what-should-i-do-in-the-mean-time/?utm_source=rss&utm_medium=rss&utm_campaign=im-a-california-based-high-school-student-and-want-to-move-to-new-york-to-work-at-a-real-estate-firm-after-i-graduate-what-should-i-do-in-the-mean-time http://ask.elliman.com/2012/05/11/im-a-california-based-high-school-student-and-want-to-move-to-new-york-to-work-at-a-real-estate-firm-after-i-graduate-what-should-i-do-in-the-mean-time/#comments Fri, 11 May 2012 15:02:22 +0000 dherman http://ask.elliman.com/?p=1018 Read More.]]> Q: Hi. I am a sophomore at Galileo high school in San Francisco, California. I’ve decided to become a real estate broker and plan on attending college in California. But I would like to work in New York, so what are some ways or options I have once I finish school to move from San Francisco to New York and get a job at a real estate firm?

A: Choosing a career in real estate early in your education process can afford you the opportunity to explore the diversity of the field. You might consider applying for internships now with local brokerages, developers, and investors, so that you can learn more about career opportunities under the real estate umbrella. Your school may be helpful in finding placements or referring you to the appropriate higher education programs that will give you the knowledge and skill sets to help you pursue your passion.

It is always helpful to get some local experience before you relocate. Additionally, having a resume will make your placement in New York easier.

Continue to visit our website and others to learn more about the variety of brokerage brands and the properties they represent. It’s also helpful to learn what’s required by New York State for licensure, as it differs from California law.

Good luck, and we invite you to come see us when you’re in New York!

]]> http://ask.elliman.com/2012/05/11/im-a-california-based-high-school-student-and-want-to-move-to-new-york-to-work-at-a-real-estate-firm-after-i-graduate-what-should-i-do-in-the-mean-time/feed/ 0 Is there a minimum credit score that landlords look for in potential renters? http://ask.elliman.com/2012/05/08/is-there-a-minimum-credit-score-that-landlords-look-for-in-potential-renters/?utm_source=rss&utm_medium=rss&utm_campaign=is-there-a-minimum-credit-score-that-landlords-look-for-in-potential-renters http://ask.elliman.com/2012/05/08/is-there-a-minimum-credit-score-that-landlords-look-for-in-potential-renters/#comments Tue, 08 May 2012 14:49:11 +0000 dherman http://ask.elliman.com/?p=1012 Read More.]]> Q: Is there a cutoff that landlords look for in scores in renting in the Manhattan market?

A: It’s subjective to the individual landlord or property, but a 650 FICO credit score is a good median to use as a guide for what most landlords would consider “OK” or a threshold score.

Some landlords may consider extra security or advanced rent as compensation for a lower score. A renter who has a low score can review why at www.annualcreditreport.com and address the reasons with the appropriate creditor in order to raise their score.

]]> http://ask.elliman.com/2012/05/08/is-there-a-minimum-credit-score-that-landlords-look-for-in-potential-renters/feed/ 0 What type of loan should I take out to do home improvements? http://ask.elliman.com/2012/05/07/what-type-of-loan-should-i-take-out-to-do-home-improvements/?utm_source=rss&utm_medium=rss&utm_campaign=what-type-of-loan-should-i-take-out-to-do-home-improvements http://ask.elliman.com/2012/05/07/what-type-of-loan-should-i-take-out-to-do-home-improvements/#comments Mon, 07 May 2012 16:59:08 +0000 jscheck http://ask.elliman.com/?p=1004 Read More.]]> Q: What type of loan (equity line of credit or loan) would be better to take out to pay off credit cards and do minor home improvements on an investment property? Total debt is $87,000 and have 2 credit scores over 710.

A: There are a few ways to use equity from your home to pay off debt and make home improvements. A home equity line of credit is a variable rate, and is tied to the Prime Index Rate. Or, a conventional loan with an equity refinance would provide a fixed rate. There are many mortgage options available depending on the product that will best fit your needs. It would be best to complete a complimentary consultation, which would involve a mortgage pre-approval to determine which product makes the most sense for your situation.

Please contact us if we can be of further assistance.

]]> http://ask.elliman.com/2012/05/07/what-type-of-loan-should-i-take-out-to-do-home-improvements/feed/ 0 What is the process for renting a house in the Hamptons? http://ask.elliman.com/2012/05/07/what-is-the-process-for-renting-a-house-in-the-hamptons/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-the-process-for-renting-a-house-in-the-hamptons http://ask.elliman.com/2012/05/07/what-is-the-process-for-renting-a-house-in-the-hamptons/#comments Mon, 07 May 2012 16:45:06 +0000 admin http://ask.elliman.com/?p=999 Read More.]]> Q: What is the process and what are the fees for renting a house in the Hamptons? (broker fee, application, necessary paperwork)

A: Finding the perfect Hamptons rental can be a daunting process, which is why having a knowledgeable real estate agent to guide you through the process from start to finish is absolutely essential. In selecting your agent, make sure you pick someone who understands your needs. Then, together you can outline the details, such as budget, location, property size and required amenities. The agent will then curate the available listings on the market that meet your criteria and show you the options that he or she feels are the best fit. Once you find a house, a rental agreement will be drawn for you to sign. You are typically required to pay half of the full payment upon signing, and the balance seven days prior to occupancy, as well as a security deposit (the standard is 10%). Unless there are any issues or damages to the property as a result of your occupancy, you will get your security deposit back after your rental term is up.

Generally, the owner of the home will pay the broker a commission of 10%. After a successful and wonderful summer, you can call your broker and either decide to buy, or do it all over again the next summer!

If you would like us to help pair you with the right Hamptons rental agent, we would be happy to do so!

]]> http://ask.elliman.com/2012/05/07/what-is-the-process-for-renting-a-house-in-the-hamptons/feed/ 0 My partner and I are looking to move to New York City with our 3 dogs. What resources should we review prior to working with a broker? http://ask.elliman.com/2012/04/26/my-partner-and-i-are-looking-to-move-to-new-york-city-with-our-3-dogs-what-resources-should-we-review-prior-to-working-with-a-broker/?utm_source=rss&utm_medium=rss&utm_campaign=my-partner-and-i-are-looking-to-move-to-new-york-city-with-our-3-dogs-what-resources-should-we-review-prior-to-working-with-a-broker http://ask.elliman.com/2012/04/26/my-partner-and-i-are-looking-to-move-to-new-york-city-with-our-3-dogs-what-resources-should-we-review-prior-to-working-with-a-broker/#comments Thu, 26 Apr 2012 19:31:25 +0000 dherman http://ask.elliman.com/?p=993 Read More.]]> Q: My partner, along with 3 dogs (2 small and 1 medium sized) and myself are likely to be relocating to NYC. We have visited but never lived in the city and have very cursory knowledge of the various neighborhoods. What resources do you suggest I review prior to working with an agent? I don’t want to waste the agent’s time and money, nor mine. Best Regards.

A: The process of selecting a real estate professional involves not only researching their expertise, but also talking on the phone, or meeting with them personally to establish a rapport. Your agent is both resource and sounding board, and the relationship between you is key.

Suggested first steps are researching agencies and agents who may have been referred to you. Visit their website, read their bios, and look at the listings they represent. If you have special neighborhoods that you initially prefer, your online search may produce agents with specialties. In addition, once you do select an agent, you need to be sure to communicate that he or she must show you pet-friendly options only. Not all buildings in New York allow pets, and 3 dogs is a challenge. The search feature on Elliman.com allows you to select a “Pet Friendly” option, which can help you filter out properties that will not accommodate your dogs. You can also view neighborhood guides on Elliman.com to start getting a feel for where you might like to be.

We’d be most happy to assist you in your search and to match you with one of our real estate professionals who is best suited to your needs and who will help you find your home in New York.

]]> http://ask.elliman.com/2012/04/26/my-partner-and-i-are-looking-to-move-to-new-york-city-with-our-3-dogs-what-resources-should-we-review-prior-to-working-with-a-broker/feed/ 0 I’m from Vancouver, BC and I want to move to New York. How do I go about buying real estate in the U.S.? http://ask.elliman.com/2012/04/26/im-from-vancouver-bc-and-i-want-to-move-to-new-york-how-do-i-go-about-buying-real-estate-in-the-u-s/?utm_source=rss&utm_medium=rss&utm_campaign=im-from-vancouver-bc-and-i-want-to-move-to-new-york-how-do-i-go-about-buying-real-estate-in-the-u-s http://ask.elliman.com/2012/04/26/im-from-vancouver-bc-and-i-want-to-move-to-new-york-how-do-i-go-about-buying-real-estate-in-the-u-s/#comments Thu, 26 Apr 2012 19:16:50 +0000 dherman http://ask.elliman.com/?p=990 Read More.]]> Q: I am currently living in Vancouver BC, looking for a home in Manhattan. I am wondering if you have a guide to buying real estate in the U.S, as I am
unfamiliar with the buying process there.

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. Browsing the internet in advance will help familiarize you with the variety of neighborhoods New York has to offer, and visiting websites like Elliman.com will help you begin to learn about size and pricing. We recommend working with a real estate professional to help you through the process, and would be happy to match you with an agent who best suits your particular needs.

As a non-US citizen, a condominium be your 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. Please keep in touch and let us know how we can help you find your home in New York. 

]]> http://ask.elliman.com/2012/04/26/im-from-vancouver-bc-and-i-want-to-move-to-new-york-how-do-i-go-about-buying-real-estate-in-the-u-s/feed/ 0 What will going into foreclosure to do my Fico score? http://ask.elliman.com/2012/04/25/what-will-going-into-foreclosure-to-do-my-fico-score/?utm_source=rss&utm_medium=rss&utm_campaign=what-will-going-into-foreclosure-to-do-my-fico-score http://ask.elliman.com/2012/04/25/what-will-going-into-foreclosure-to-do-my-fico-score/#comments Wed, 25 Apr 2012 15:07:36 +0000 tbecker http://ask.elliman.com/?p=981 Read More.]]> Q: I have a credit score in the high 700s and will be going into foreclosure on a home. Can you tell me what that will do to my Fico score?

A: It is hard to say what your exact score will wind up being once the foreclosure is updated on your credit report, but it will definitely decrease by over 100 points.  When it comes to Fico scores, the higher your score, the more it drops when there is a new delinquency.  Obviously you have not been late on your mortgage yet, or your score would be much lower.  Fico released some very interesting information this past year about credit scores and foreclosures.  They gave an example that might help you get a sense of the impact:

  • 780 Fico score would decrease down to a 620-640 score after a foreclosure and would take 7 years to naturally recover.
  • 680 Fico score would decrease down to a 575-595 score after a foreclosure and would take 3 years to recover.

 

In June, the new Home Affordable Foreclosure Alternatives (HAFA) rules will begin allowing homeowners who are going into short sale but who have no late payment history on their mortgage to have minimal decreases in credit scores.  You might want to look into that option as well.

 

]]> http://ask.elliman.com/2012/04/25/what-will-going-into-foreclosure-to-do-my-fico-score/feed/ 0 I want to use my current home as an income-producing property, but am having trouble getting a loan. Can you help? http://ask.elliman.com/2012/04/20/i-want-to-use-my-current-home-as-an-income-producing-property-but-am-having-trouble-getting-a-loan-can-you-help/?utm_source=rss&utm_medium=rss&utm_campaign=i-want-to-use-my-current-home-as-an-income-producing-property-but-am-having-trouble-getting-a-loan-can-you-help http://ask.elliman.com/2012/04/20/i-want-to-use-my-current-home-as-an-income-producing-property-but-am-having-trouble-getting-a-loan-can-you-help/#comments Fri, 20 Apr 2012 18:15:58 +0000 jscheck http://ask.elliman.com/?p=976 Read More.]]> Q: I own a three-family home in Holyoke, Massachusetts, and would like to use it as a rental/income property and purchase a home in a more rural area. Can you help me find a lender who doesn’t see in only black and white? I spoke with a lender who said that they would not consider the rents from all three apartments because it wasn’t on my taxes as such. I tried to explain that I am living in one apartment and my mother in another, so the two apartments weren’t rented out. I have all three apartments rented out–$700, $700, and $850 per month covers ALL the mortgage, taxes and insurance, and leaves me with $950 income at the end of the month. I am so frusterated and any help on such a lender or your professional suggestions would be greatly appreciated!! Thank you.

A: With a conventional mortgage, the typical requirement is a 2-year history documenting rental income with an investment property via the Federal Tax Return. This condition can be avoided by applying for an FHA loan, which does not require a 2-year history for rental income. If you would like to discuss the requirements for on FHA loan, please contact us, and we would be happy to do so with you.

]]> http://ask.elliman.com/2012/04/20/i-want-to-use-my-current-home-as-an-income-producing-property-but-am-having-trouble-getting-a-loan-can-you-help/feed/ 0