Important Moments in Buying a Home — Part 1 (買房的重要環節 一)

Buying a home in New York City involves many critical steps. Missing or mishandling any one of them can lead to delays, financial loss, or legal problems. In this two-part series, we walk you through the most important moments in the home buying journey. Part 1 covers the process from initial search through contract signing.

Moment 1: Getting Pre-Approved for a Mortgage

Before you start looking at properties, obtain a mortgage pre-approval from a reputable lender. A pre-approval letter tells sellers that:

• You have been evaluated by a lender and are creditworthy
• You can afford the property within a certain price range
• Your offer is serious and backed by financial capacity

In competitive markets, a pre-approval is practically a requirement — many sellers and listing agents will not entertain offers without one.

Moment 2: Finding the Right Property

Work with a knowledgeable real estate agent who understands the neighborhoods you are interested in. When evaluating properties, consider:

• Location, transportation access, and neighborhood amenities
• Property condition and any needed repairs
• Building financials (for co-ops and condos)
• Future development plans in the area
• School districts (if applicable)

Moment 3: Making an Offer

Once you find the right property, your agent will submit an offer on your behalf. In New York, an offer is typically verbal or in writing but is not legally binding until a written contract is signed by both parties. Key considerations:

• Base your offer on comparable sales and market conditions
• Be prepared for counteroffers and negotiation
• Include any conditions important to you (closing timeline, included items, etc.)

Moment 4: Hiring Your Attorney

Once your offer is accepted, the seller's attorney will prepare a draft contract of sale and send it to your attorney for review. This is a critical moment — you need an experienced real estate attorney who will:

• Review every provision of the contract carefully
• Negotiate favorable terms and contingencies
• Explain the contract to you in language you understand
• Ensure your deposit is properly protected in escrow

Moment 5: Contract Review and Due Diligence

Your attorney will review the contract and may request changes. During this period, your attorney also conducts initial due diligence:

• For houses: Review property records, check for open violations, verify zoning compliance
• For condos: Review the offering plan, building financials, meeting minutes, and any pending litigation
• For co-ops: Review the proprietary lease, house rules, financial statements, and sublet policies

Moment 6: Signing the Contract

After all negotiations are complete and both parties agree on terms, you sign the contract and deliver your deposit check (typically 10% of the purchase price). At this point:

• The contract becomes legally binding once signed by both parties
• Your deposit is held in escrow by the seller's attorney or your attorney
• The mortgage contingency clock begins (usually 30-45 days)
• You are committed to the purchase unless a contingency allows you to cancel

Continue reading Part 2 to learn about the steps from contract signing through closing day.

Have questions about the home buying process? Contact Huang & Associates, P.C. for guidance at every step.