Buying Process For Foreign / Overseas Investors
Below is the process for buying a condo in Manhattan, New York. The process is similar for those buying the condo as an investment property or as a vacation home. Main difference is that for investment property buyers, down payment required by the lender is higher.
Estimated Time to closing after identifying property:
With Financing: 10 to 12 weeks
All Cash: 2 to 3 weeks
1. Obtain pre-approval from lender (1-5 days)
Lender can be a U.S. bank or overseas bank at buyer's home country with an international mortgage program.
2. Identify Property (2 days - several months)
Property viewing can be a pleasurable or tiring experience. Our value is in filtering properties based on the client's objective to maximize productivity of the client's time.
3. Make offer and negotiate price (1 week)
Negotiation skills are critical. Experienced negotiators could obtain many favorable financial and non-financial terms for the buyer.
4. Execute contract (1-2 weeks)
The agreed upon terms are provided to both parties' attorneys who will prepare the contract. The buyer's attorney will perform due diligence on the property prior to actual contract execution. Once all is agreed upon, the contract is executed. At this time, a 10% deposit will be required from the buyer to be held in escrow by the attorney.
5. Apply For Mortgage and Obtain Commitment Letter (6-9 weeks)
The buyer formally applies for a mortgage after which the lender will perform due diligence, including appraisals etc. Consequently, the lender will issue a commitment letter.
6. Submit condo package to condo board for approval (1 to 4 weeks)
This occurs concurrently with Step 5 above.
7. Schedule Closing
At closing, all parties - buyer, seller, bank, attorneys, brokers, will come together at a table. A lot of paperwork is signed and funds will be provided to the seller in exchange for the buyer getting legal title to the property. The deal will be completed at the table and usually no future follow-ups are necessary.