Buying a home in New York City is one of the biggest financial decisions you will ever make. Preparation is everything. Here is what you need to do before you start shopping.

Know Your Credit Score

Pull your credit report from all three bureaus — Equifax, Experian, and TransUnion — at annualcreditreport.com (free, federally mandated). In NYC, most co-op boards and conventional lenders require a minimum score of 680–720. FHA loans allow scores as low as 580 with 3.5% down. Dispute any errors before you apply for financing.

Understand How Much You Can Afford

A general rule: your total monthly housing costs (mortgage principal, interest, taxes, insurance, HOA/maintenance) should not exceed 28–31% of your gross monthly income. NYC co-ops often require buyers to show post-closing liquidity of 1–2 years of maintenance payments. Get pre-qualified by a licensed lender before touring properties.

Save for Down Payment and Closing Costs

In NYC, plan for:

- Down payment: 10–20% for condos and houses; co-ops often require 20–25%

- Closing costs: typically 2–6% of the purchase price (includes attorney fees, mortgage recording tax, title insurance, mansion tax if over $1M)

- Reserve funds: many co-op buildings require 6–12 months of reserves post-closing

Get Your Documents Ready

Lenders and co-op boards will ask for: two years of tax returns and W-2s, recent pay stubs, two to three months of bank statements, and proof of any gift funds. Self-employed buyers should have two years of business returns and a CPA letter.

Hire a Licensed NYC Real Estate Attorney

New York State requires attorneys to handle real estate closings. Your attorney reviews contracts, negotiates contingencies, performs title searches, and attends closing. Budget $1,500–$3,000 for attorney fees.

Work With a Licensed Real Estate Agent

An AFMC agent represents you at no cost — seller pays the commission in most transactions. We know co-op board requirements, neighborhood pricing, and how to negotiate in a competitive market. Call us at (212) 644-8231 for a free consultation.

Disclosure: AFMC NY operates as a licensed real estate brokerage under broker Sy Williams, NYS License #10491208948. All agents are licensed NYS real estate salespersons. We do not provide legal, tax, or financial advice. Consult a licensed attorney, CPA, or financial advisor for guidance specific to your situation.