Before you make an offer on a home, your financial profile needs to be airtight. Use this checklist to get ready.

Credit Score

- Pull all three credit reports at annualcreditreport.com — free, no catch

- Dispute errors: even small inaccuracies can cost you a better rate

- Target score: 720+ for best conventional rates; 680+ minimum for most NYC co-ops; 580+ for FHA

- Do not open new credit accounts or carry high balances in the 3–6 months before applying

Debt-to-Income Ratio (DTI)

Lenders generally require your total monthly debts (including the proposed mortgage) to stay below 43–45% of gross monthly income. Lower is better. Pay down revolving debt (credit cards) first — it has the fastest impact on DTI and credit score.

Down Payment

- Condo or house: 10–20% typical; FHA minimum 3.5%

- Co-op: 20–25% is standard; some require more

- Source matters: funds must be seasoned (in your account 60–90 days) or documented as a gift with a signed gift letter

- NYC first-time buyer programs: check NYC Housing Preservation & Development (HPD) and State of New York Mortgage Agency (SONYMA) for down payment assistance programs

Savings Beyond the Down Payment

Closing costs in NYC run 2–6% of purchase price on top of the down payment. Co-op boards also require post-closing reserves. Plan to have:

- Down payment

- Closing costs (attorney, title, mortgage recording tax, mansion tax if over $1M, bank fees)

- 6–12 months of carrying costs in liquid savings after closing

Employment and Income Stability

Lenders want to see two years of consistent employment. If you changed jobs recently, it helps if you stayed in the same field. Self-employed buyers need two full years of filed tax returns showing sufficient net income — lenders use the lower of the two years.

Pre-Approval vs. Pre-Qualification

Pre-qualification is an estimate based on self-reported information. Pre-approval is a formal underwriting review with verified documents. In NYC's competitive market, sellers and their agents take pre-approval seriously. Get pre-approved before you start touring.

Next Step

Contact an AFMC agent at (212) 644-8231. We will connect you with vetted licensed lenders and guide you through the entire process from credit check to closing.

Disclosure: AFMC NY is a licensed real estate brokerage. Broker: Sy Williams, NYS License #10491208948. This checklist is for general informational purposes only. Consult a licensed mortgage professional for guidance specific to your financial situation. SONYMA and HPD program eligibility requirements change — verify current terms at their official sites.