The NYC Home Buyer’s Checklist, Everything to Do Before You Buy

1Get Your Finances in Shape

Three to six months before you start touring

Before you fall in love with an apartment, know exactly what you can comfortably afford. In New York that means more than the purchase price.

• Pull your credit reports from all three bureaus (free at AnnualCreditReport.com) and fix any errors
• Add up your all-in monthly cost: mortgage, maintenance or common charges, property taxes and insurance
• Set aside your down payment, plus closing costs, plus a cash cushion for after closing
• Check whether you qualify for first-time buyer help, like the city’s HomeFirst program and SONYMA loans
• Talk to at least three lenders and get pre-approved, not just pre-qualified
• If family is helping with the down payment, get a signed gift letter and move the money early
• Freeze your credit habits until after closing: no new cards, car loans or job changes if you can help it

Every program, income limit and tax break I know of is in NYC First Time Home Buyer’s Programs, Decoded. Many co-op boards also want to see one to two years of carrying costs left in the bank after closing, so plan your cushion around the buildings you’re considering.

2Gather Your Documents

Start a folder now, and keep it current

Lenders, attorneys and co-op boards all ask for the same core paperwork. Collect it once, keep it in one secure folder, and update the statements every month while you’re searching.

Everyone needs

• Government photo ID for every buyer
• Two years of federal tax returns, signed, with every schedule
• Two years of W-2s or 1099s
• Your most recent 30 days of pay stubs
• An employment verification letter showing your title, salary and start date
• Two to three months of bank, brokerage and retirement statements, every page
• Your mortgage pre-approval letter, then your commitment letter once you’re in contract
• Proof of funds for the down payment and closing costs, or the full price if you’re paying cash
• Gift letters and the matching bank records, if anyone is helping

If you’re self-employed

• Two years of business tax returns
• A year-to-date profit and loss statement, ideally from your accountant
• A letter from your CPA confirming your income and how long you’ve been in business

If you’re buying a co-op

• A REBNY financial statement listing your assets, debts and net worth (every number has to match your statements)
• Two or three personal reference letters addressed to the board
• A professional reference letter
• A landlord reference letter, or a letter from your current managing agent if you already own
• A short cover letter introducing yourself to the board
• Your homebuyer education certificate, if you’re using HomeFirst

Every building has its own application, so the managing agent will send a full list once you’re in contract. If you’re still deciding between a co-op and a condo, start with Co-op, Condo or Condop?.

3Decide What and Where You’re Buying

Before your first showing

In New York, the type of building shapes your whole purchase: your down payment, your closing costs, your timeline and how freely you can rent the place out later.

• Choose co-op, condo or townhouse, or decide to stay open (my guide Co-op, Condo or Condop? walks through the trade-offs)
• Write down your must-haves and your nice-to-haves, and keep the lists separate
• Pick two or three neighborhoods and visit each on a weekday morning, a weeknight and a weekend
• Time your real commute at rush hour, door to door
• Think five years ahead: kids, a home office, a partner, a pet, a car

Neighborhoods matter as much as apartments. My New York Neighborhood series digs into the history and character of the places my clients are considering. Start with Park Slope, my love letter to Green-Wood Cemetery, and my guide to Fall in Brooklyn.

4What to Look For at Every Showing

Bring this list with you

Photos flatter. Walk every apartment as if you already live there, and look past the staging.

• Light and exposure: which way do the windows face, and what’s across the street?
• Layout and potential: could a wall move, or a dining area become an office?
• Signs of water: stains on ceilings, under sinks and around windows and radiators
• Windows, floors and the age of the kitchen and bathroom
• Heat and cooling: how is the apartment heated, and is air conditioning allowed through the wall or windows?
• Laundry in the unit, in the building, or down the block
• Noise from the street, the elevator, the trash room and the neighbors
• Closets and storage, plus bike or storage rooms in the building
• The lobby, hallways, roof and basement, which tell you how well the building is run
• Cell signal and internet providers

I’m trained as a designer, so I’ll always tell you what a space could become, not just what it is today. If you like an apartment but need one more room, read my guide to flex apartments before you rule it out.

5Do Your Homework on the Building

Once your offer is accepted, before you sign

In New York, your attorney does this deep dive before you sign the contract. Know what they’re looking for, and ask about anything that worries you.

Co-ops and condos

• The offering plan and any amendments
• Two years of audited financial statements: the reserve fund, any underlying mortgage, and whether the building runs at a surplus or a deficit
• Board minutes from the past year or two, which reveal planned repairs, disputes and upcoming costs
• Any current or planned assessments
• House rules on subletting, pets, renovations and pieds-à-terre, plus any flip tax
• How many apartments are owner-occupied, and whether there’s any pending litigation
• For larger buildings, whether the board has a plan for the city’s energy and emissions rules

Townhouses and multifamily homes

• A professional home inspection, including the roof, boiler, foundation, plumbing and electrical
• The certificate of occupancy, to confirm the legal number of units, especially if you’re counting on rental income
• The seller’s property condition disclosure, which now includes flood history
• The lead paint disclosure, for any home built before 1978
• A survey and a title search to confirm boundaries, liens and easements

Every building

• Open violations and complaints on HPD Online and with the Department of Buildings
• Flood risk for the address on FloodHelpNY
• Sales history and recorded documents on ACRIS

6Budget for Closing Costs

Paid on top of your down payment

New York has a few closing costs you won’t see in other states. Your attorney and lender will give you exact numbers, but plan for these. My guide NYC First Time Home Buyer’s Programs, Decoded breaks down the biggest ones.

• Your real estate attorney’s fee
• Lender fees, the appraisal and your credit report
• The mortgage recording tax, if you’re financing a condo or a house (co-ops don’t pay it)
• Title insurance, for condos and houses
• The “mansion tax,” an extra 1% on homes priced at $1 million or more
• Co-op fees: the board application, the lien search and move-in deposits
• Prepaid property taxes, insurance and common charges or maintenance
• Homeowners insurance (an HO-6 policy for a co-op or condo), and flood insurance if you need it
• Movers, and any building move-in requirements like insurance certificates

7From Accepted Offer to Keys

What happens, in order

Every deal is different, but most New York purchases follow the same path. A condo can close in about a month with cash; a financed co-op usually takes two to three months.

1. Your offer is accepted, and your attorney reviews the building and the contract.
2. You sign the contract and put down a deposit, typically 10% of the price, held in escrow.
3. Your lender appraises the home and issues a mortgage commitment.
4. For a co-op, you submit the board package and meet the board. For a condo, the board usually waives its right of first refusal.
5. You do a final walkthrough, usually a day or two before closing.
6. You close, sign a stack of papers, and get your keys.

8After You Get the Keys

Your first 30 days as an owner

• Register for the New York State STAR school tax credit (it doesn’t transfer from the seller)
• Set up electricity and gas with Con Edison or National Grid, plus internet
• Confirm your homeowners insurance is active, and keep the declarations page handy
• Change your address with the post office, your bank, your employer and the DMV
• Save your closing binder, deed or stock certificate, and closing statement somewhere safe
• Introduce yourself to the super and your neighbors
• Celebrate. You did it.