Financing an Apartment in New York What You Need to Know

You have to have a US Bank account at least 6 month prior to getting a mortgage

You have to have an established line of credit

With the current mortgage crises most banks that lend expect buyers to put down 20% if you have an average credit score expect to put more money down. The bank wants to see that you have 6 months of mortgage and maintenance plus the closing cost coming out of the same account

The rates of mortgages are determined on basis of your credit history/ how much you are financing and if it’s a primary home, for investment or a second home, you need to keep this in mind ask several mortgage brokers what the interest rate will be under each scenario. This will help your decision making. The cheapest interest rate is generally for primary residence.

Be Prepared with 2 years of Tax Returns and W2 Forms; Bank Statements for at least the last 6 Months; Income Verification; Current address Verification and Rent Payment History for  the last 12 months; Liquid Assets Verification;  Downpayment Verification and more.

If you buy a coop make sure that you have all the money in your account at least 2 months prior buying
With the new mortgage crises financing takes longer then usual, be prepared  make sure that your broker and lawyer negotiated at least 60 day mortgage contingency.

Make certain that if you buy into a new development that the building has a lender in place or that condo is at least 70% sold - most banks do not lend into new construction unless its 70% sold or in contract. This is very important point since if for any reason you are not able to get financing you could lose your down payment.

Also, make certain that the building is approved by the lender.

Finally, some banks have a new rule which requires the building to be 80% owner occupied... if the building has 22% renters you could be out of luck.
 

Resources & Guides

Calculators

Real Estate Links & Publications