So many people do not realize what is involved in the purchase of a home from start to finish.
Here is the typical Anatomy of A Long Island NY Real Estate transaction. (Typical involves a buyer and a "normal" seller. Not a foreclosure or a Short Sale)
It may seem daunting, but it really is not. It is a one step at a time process and I am very happy to hep you, explain each step, and hold your hand as needed all along the way...
• Talk to a lender. This is the same ANYWHERE! First thing I advise is to talk to a lender and see how much you can really afford to spend.
This depends on so many factors including credit score, outstanding debt, debt:income ratio to name a few. A lender will talk to you, look at all the factors, tell you how much you can spend and then give you the all important Pre-Approval or Pre-Qualification.
The reason this needs to be done first is because this letter will be needed before you can make an offer on any house. You don't want to walk into your Dream House and then find out that you can't afford to buy it, or that another offer is accepted while you are waiting for your preapproval letter.
If you need help finding a lender I have a number than I can recommend for you to use.
• Make a wish list. Write down in order of importance what you are looking for in a home, what is most important to you. Do you want a lot of bedrooms? A big yard? A Basement? A certain School District? Remember that you will most like NOT get everything on your list. A home purchase most always involves compromise. That's why it is called a wish list! Keep an open mind.
• Look for homes. You can start your home search online to get an idea of what is out there, dip your toe in the water so to speak. If you are looking for a home on the South Shore of Long Island in or around the Five Towns area a good place to start is on FindYourHomeLI.com. You can search the entire MLSLI from there, save searches and get automatic updates.
I'll also be happy to give you a FREE Listingbook account to help make your home search even easier. Just ask and I'll tell you how it can work for you and get you set up in a matter of minutes.
• Find YOUR home and submit an offer. When you find the right house, your fist step will be to submit an offer. The offer includes the amount of your initial offer, the amount of your total downpayment, the amount you will be mortgaging and your terms; how quickly you want to close, do you have to sell to buy etc.
• Negotiations. This is the back and forth until we reach a price and terms that both buyers and sellers are happy with. Some people think this is the stressful part, but not so much.
• Accepted offer!! Congratulations!
• Get a Home Inspection. Use a reputable inspection company to come in and take a look at the house. They will check the roof, foundation and everything in between. This is typically done a few days after your offer is accepted. This gives you the opportunity to request repairs or negotiate any issues that might be found during the inspection. Inspections have different results for every transaction; some uncover pretty major issues that need time to be addressed, most are pretty minor, but it's better to be safe than sorry. Not all sellers will renegotiate after the inspection, but at least you will be informed.
• Sign Contracts. You will speak with a REAL ESTATE Attorney who will talk to the Seller's Attorney and get Contracts drawn up, These will include all the specifics about the deal, when you sign the contracts you will also need to give a downpayment check - typically 5% to 10%. I strongly recommend that you use a Real Estate Attorney, not a friend who is going to do you a favor. After you sign the contracts your seller will sign. At this point you are considered "In Contract" and the house is marked "Pending" and will no longer be shown.
• Apply for your Mortgage. Once you have signed contracts you can apply for your mortgage. Typically this is the documentation that a lender will need from you though it may vary from lender to lender:
• Signed Contract.
• Residence address(es) for past two (2) years.
• Employment history for the last two (2) consecutive years. Including: dates employed, name, address and phone number of employer
• Current pay stub(s) verifying 30 days of income and year-to-date income, including any overtime, commission or bonus income.
• W-2 forms for all employers covering the last two (2) years
• If you are self-employed or are paid commission income, provide signed copies of personal federal tax returns with all schedules for the last two (2) years.
• If you are self employed, provide a copy of Corporate or Partnership tax returns last two (2) years, include all schedules and signed by a company officer.
• If you are self-employed, provide copies of your balance sheet for the last two (2) years.
• If you are self-employed, provide a copy of your Profit and Loss Financial Statement through the most recent quarter/month.
• Complete Bank Statements (for all accounts), or any other asset verification, covering the last two (2) months
• Complete itemized list of all monthly payments made by you.
The application process can take anywhere from 30 to 90 days.
• Appraisal. The lender will order an appraisal to be sure the house value is there for the mortgage,
• Title Insurance. You attorney will order Title Insurance to protect you. The Title Company will make sure that among other things the sellers are the legal owners, that there are no liens or encumberances against the home, that all additions and modifications are legal.
• Homeowners Insurance. You will be required to get a homeowners insurance policy before you can close. The Lender will be a Lien Holder on the policy and will give you the minimum policy requirements.
• Clear to Close - Closing. Once your bank gives you the Clear to Close your attorney will speak with the seller's attorney and the bank attorney to set up a closing date.
At the Closing Table there will be a bunch of people including you and your attorney, the sellers and their attorney, the bank's attorney, the Title Closer and the Realtors involved in the sale. A typical closing is between 1-1/2 and 3 hours. You will be signing all the bank documents and any side agreements with your sellers. Your attorney will explain all the documents to you all the way through.
Before the closing arrange to have all the utilities switched to your name on the say of the closing. It is easiest to coordinate this with the sellers.
Congratulations You Are Homeowners!
• Move In. Unless you have made arrangements to let the sellers stay after the closing you can move in any time. I will have another post with tips to make moving easier and less stressful.
If you have any questions at all about Five Towns Long Island Real Estate or the steps involved in a Real Estate transaction, let me know. I will be happy to help you.
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Donna Galinsky
FindYourHomeLI.com
Five Towns Long Island Real Estate
Your Five Towns Real Estate Directory
Licensed Salesperson, Pugatch Realty Corp.
If you are thinking of buying or selling a home on the South Shore of Long Island in Southwest Nassau County (Cedarhurst, East Rockaway, The Five Towns, Gibson, Hewlett, Hewlett Harbor, Hewlett Bay Park, Hewlett Neck, Inwood, Lawrence, Lynbrook, North Woodmere, Oceanside, Valley Stream, Woodmere or Woodsburgh please visit my website for more information on buying a home in LI Five Towns and selling your Five Towns Long Island home . You can also search the entire MLSLI . Let us tell you what makes us different from the rest.
Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent.



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