Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
Brooklyn real estate couldn’t be hotter if it tried. This area is famously trendy and a great place for families that want to enjoy all the finer things in life. Renting an apartment is a great way to live in New York, but sometimes, you might want to own your apartment. In NYC, intelligent real estate investors are now looking to buy their apartments. If you’ve ever fallen in love with your apartment to the point that you’ve wished that you could buy it, you might understand the appeal of this option. The biggest issue with this potential project is that you will need to have a lot of money to make it happen. But, how much money is enough to buy an actual apartment in the BK? We will explain the financials about how to Buy An Apartment In Brooklyn. How much does an apartment in Brooklyn cost to buy?
How much to buy an apartment in Brooklyn? Before you even consider buying an apartment, you need to figure out if the buying life is right. Buying an apartment has very similar requirements to buying a house. You either will need to pay cash for the apartment, or you will have to qualify for a loan.
This means that you need to make sure the following things are true:
How much does an apartment in Brooklyn cost to buy? Down payments can be pretty hard to come up with, especially if you are new to real estate. If you want to get a traditional loan for the apartment you want, you will need to have 20 percent of the apartment’s price lined up as a down payment. For a $500,000 apartment in Brooklyn, this means you will need to have $100,000 for a down payment.
However, certain loan types (like FHA loans, for example) will allow you a lot of leeway in terms of your savings. It’s possible to qualify for an FHA loan with as little as 3.5 percent of the money down. With an FHA loan-type model, you would only need to have $17,500 for a down payment on a half-million-dollar apartment.
If you are a veteran, you might be able to get a loan without any down payment whatsoever. However, this is pretty rare.
Most home buying articles note that you will need to have a down payment before putting an offer on your home. That’s great and all, but that doesn’t mean that you have everything put together. You also will need to have some money set aside for closing costs and fees.
How much you should expect to pay depends on the type of apartment you want to buy. Here’s what you need to be aware of:
If you want to get a traditional loan, you will need to save up anywhere from 21 to 26 percent of the home price. The rest is usually handed via financing. This often means that you will need to save up for several years before making a home purchase. Thankfully, there’s always a way to ensure that you get the most out of your savings.
If the idea of saving for an apartment is a great thing to you, you’re not alone. Unfortunately, apartment down payments can be prohibitively high in New York City. Thankfully, there are tools that you can use:
Of course! If you want to buy an apartment, co-op, or condo in New York City, you need to know what options you have at your hand. Telling your real estate agent about your financial situation is a great way to make sure you get as much advice as possible to help pair you with the right home, the right mortgage, and more. If you’re ready to buy and want to save cash on fees, call up an agent as soon as you can.