So you’re buying some real estate, but you don’t want to pay cash for it. Guess what? That makes you smart. Why not borrow money at 4.5% or 5% instead of paying cash? Most people don’t have enough money to pay all-cash for a home. And if they do, this probably wouldn’t be the best choice for them, anyway. Buying with a mortgage is always a better financial decision.
What if your income isn’t necessarily what they call “W-2” though?
This is the case for many New Yorkers, including myself. As a real estate agent, I use a 1099 form because my income can fluctuate from year to year. If you’re in a similar situation and you work in an industry where your income can fluctuate, do lenders know how to deal with that? Most of them do, but not all of them.
"When buying a home in New York City, always work with a New York City lender."
This is why we always insist that you use a lender whose office is located here in New York City. When I worked in other states, it wasn’t uncommon for me to see a buyer go onto lendingtree.com or quickenloans.com and end up working with a loan processor that was in a different state. If a loan processor gives you a good rate, it’s no big deal if they’re out of state, but it doesn’t work that way in New York City. The buildings are all unique, and they each need to be individually underwritten.
The underwriters at Chase Bank in New York City will treat bonus income much differently than the underwriters at Chase Bank somewhere in Ohio. They’ll tell you that the process is the same, but I’ve been doing this for 14 years, and I can tell you that it’s not the same.
That’s the secret—when buying a home in New York City, always work with a New York City lender. All banks have New York City offices, and a local lender will be able to account for factors like your bonus income or any exceptions that may be needed for the building. They’ll also be able to work with you on the financial disclosure if you have a high net worth and you want to structure things in a way that protects you.
If you have any more questions about the mortgage process or you have any other real estate needs I can help you with, don’t hesitate to give me a call or send me an email. I’d be happy to assist you.