Within the New York City real estate market, first time home buyers can pursue the American dream and find their perfect home. Offering amazing diversity and endless possibilities, the New York marketplace has homes for sale to suit every budget and lifestyle. If first time home buyers know the facts, make necessary preparations, and enlist expert help, buying a home in New York can be a stress-free experience.

Preparing to Purchase

1. Make a List

Critical considerations - such as available budget and finances, style and size of home, as well as preferred neighborhood – must top that list. First time home buyers should consider their needs as well as their budget.

2. Organize Finances

A down payment and pre-approval for financing is a must for first time home buyers. Although it is possible to obtain a mortgage with a down payment of 5% (and even less), first time home buyers are advised to strive for the recommended 20% down payment. Pre-approval for a mortgage allows a buyer to know their price range.

3. Reduce Debt

Since purchasing a home comes with extra financial obligations, try to enter into the arrangement with a minimum debt load. Lenders prefer a debt load of 36% or less. Since mortgages use up 25-28% of the average income, additional debt should only amount to 5-10% of monthly income.

Required Documentation

. Personal and business references (originals)

. Proof of pre-approval

. Recent checking and savings bank statements

. Tax returns – last two years

. List of additional liquid or non-liquid assets

. Recent 401K or retirement fund statements (if applicable)

. Recent asset portfolio statements (if applicable)

. Employment verification letter (start date, annual salary, and bonus)

. For self-employed buyers - letter from their CPA or attorney (verifying salary and net worth)

Browse the Marketplace

80% of available New York City real estate is viewed initially online. Buyers should also browse in person and explore New York with an experienced realtor. A real estate agent can offer professional advice and has expert knowledge of NYC properties.

Negotiate the Deal

When negotiating a deal, a buyer’s representative is the first time home buyer’s most valuable asset. Although the services of a buyer’s representative are covered usually by the seller’s commission payment, the rep works for the buyer – not the seller.

Arrange a Home Inspection

Buying a first time home is a huge commitment. Potential buyers need professional expertise to determine if a residence needs major repairs. A new home owner will not welcome any unexpected repair bills.

Enjoy Home Ownership

When home insurance documents are in place, ‘closing’ the deal occurs and the final papers are signed by the involved parties. When first time home buyers explore New York City real estate, they can find their dream NYC home without any hassle. Buyers’ representatives will soon have them feeling ‘at home’ within a vibrant and friendly New York City neighborhood.