Buying your first home is a big step, and in New York the process has a few extra pieces. Here’s how to get ready and where to find help.
Get your finances ready
- Check your credit. Pull your free credit reports, fix errors, and pay down card balances. A higher score usually means a lower rate.
- Save for more than the down payment. Plan for closing costs and some savings left over. Co-op boards in particular look at what you have after closing.
- Know your monthly number. Add up mortgage, property taxes, insurance, and common charges or maintenance, not just the loan payment.
- Get pre-approved before you start touring.
Loan options with smaller down payments
- Conventional loans can allow low down payments for qualified first-time buyers, usually with mortgage insurance.
- FHA loans allow lower down payments and more flexible credit, but not every building or co-op accepts them.
- SONYMA (State of New York Mortgage Agency) offers first-time buyer mortgages and down payment assistance.
New York City’s HomeFirst program, run by HPD, has offered eligible first-time buyers a forgivable loan toward the down payment and closing costs. Amounts and income limits change, so check HPD for current terms. Many programs require a homebuyer education course, which is worth taking anyway.
Choose the right property type
Condos, co-ops, and houses each come with different costs, rules, and approval processes. Co-ops are often less expensive to buy but have stricter board requirements. Read Condos vs Co-ops.
Build your team
- A buyer’s agent to find homes and negotiate
- A lender or mortgage broker
- A real estate attorney, standard in New York
- A licensed home inspector
Common first-time mistakes
- Opening new credit cards or changing jobs before closing
- Spending the whole budget on the purchase with nothing left for repairs
- Skipping the inspection to win a bidding war
See the full Step-by-Step Home Buying Guide, or contact us for a free first-time buyer consultation.