Q & A with Dottie Herman

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Q1 - How do I decide if a co-op or condo is right for me? My husband and I are looking to buy in NYC and we do not know where to begin.

A - The primary difference between co-op ownership and condo ownership is that in a co-op you are buying shares in the co-op corporation. At the Closing, you are issued a Stock Certificate and a Proprietary Lease. If you are financing the purchase, the stock is held by the lender and returned to you at payoff or upon sale. When you purchase a Condo, you are buying real property, for which you receive a Deed that is recorded. You own the fee.
 
Other differences between these two types of ownership include the purchase process itself. In the case of a co-op, you generally have to disclose more information about yourself, including your finances, than in a condo purchase application, and the maximum allowable financing is usually higher in a condo. As co-ops are, for the most part, primary residences, the rules and regulations with regard to sub-letting and usage of your property are usually more restrictive.

As you can see, there are many factors to consider when choosing between a co-op and condo and, ultimately, your financial picture, comfort level, and lifestyle needs will play a major role.

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Q2 - My sister in law is a broker; however, she doesn't work in the area where I live and I want to put my house on the market. Is there a benefit to using someone who works in the surrounding areas? Or can you sell anywhere if you are a good broker?

A - Familiarity with a neighborhood is of great benefit to a seller which includes proven track record in sales; as well as knowing the features and benefits of the neighborhood and surrounding areas. You might want to enlist your sister-in-law's assistance in selecting a broker from whom she may get a referral fee and be a sounding board for you as well.

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Q3 - I heard mortgage rates recently lowered. Is that true? What is a 30 year fixed now?

A - Continued stimulus by the Federal Reserve to keep interest rates low have pushed 30 Year mortgage rates again to new lows!  This is a historic opportunity for buyers and those looking to refinance to make the dream of an affordable home come true when everything else seems to be getting more expensive!
 

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Q4 - I am looking to buy a house with my husband. If we put down a larger down payment does it increase our chances of being qualified for a mortgage?  

A - Putting down more equity not only increases your chances of being approved, but it also can also reduce the interest rate and make your bid to the seller more attractive!

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If you have a real estate question for Dottie, please send it to; Reporters@WPCnews.com