Have you decided to buy an apartment? Before jumping into the process of choosing a real estate agent, browsing listings, and scheduling tours, it’s important to get your finances in order. Taking this step early on will help you present a stronger mortgage application and give you a clearer understanding of your financial position—before you fall in love with a specific property.

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Before You Start: How Much Can You Afford?​

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Besides the mortgage, buying a home involves one-time costs such as down payment (or the purchase price if paying all cash) closing fees, legal expenses, inspections, and moving expenses.

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While determining a final number, consider the following factors:

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Your Spending Patterns

Look at your bank statements and expenses for the past few months, including bills for cell phones, streaming services, and restaurant takeout. The Consumer Financial Protection Bureau provides a spending tracker to help you track your monthly expenses.

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Housing Expenses / Income

Federal Housing Administration suggests that you should allocate no more than 31% of your monthly income to housing expenses.

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Debt / Income

Your debt-to-income ratio, including car payments and credit card bills, should not exceed 43%. However, if you’re buying an apartment in a co-op, the typical requirement is for DTI to be 25% or below.

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Tip: Paying a larger amount of cash upfront for your home reduces the amount you need to borrow, lowering your monthly payments and lowering the amount of interest you pay over time. If you can afford a down payment of 20% or more of the home’s price, you usually won’t need to pay for mortgage insurance, a premium that protects the lender in case of default. However, don’t use all your funds for a big down payment, as lenders want to see that you have some savings. Closing costs must be considered, along with costs for moving, renovations, and other unexpected expenses. The approximate closing cost for a co-op is slightly over 1.5% of the asking price, while it’s slightly over 3.5% for a condo or a house.

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Assess Your Credit Score

Credit scores, also known as FICO scores, are used by lenders to assess the risk of lending to you. The scale ranges from 300 to 850, with higher scores indicating lower risk. According to the Consumer Financial Protection Bureau, borrowers with credit scores in the mid-to-high700s or above usually receive the best mortgage rates.

To find out your score, go to annualcreditreport.com and get your free report once a year. Note that each of the three major credit-reporting bureaus — Equifax, Experian, and TransUnion — generates its own FICO score based on the data they have. You can find all three scores here.

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If your FICO score is low, you can improve it by paying off high credit card debt and correcting any financial mistakes like errors from identity theft or mixed-up files with similar names. Be patient, as changes to your score may take time, from months for a corrected bill to years for resolved tax liens or bankruptcies. However, cleaning up your credit can significantly impact your mortgage rate.

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Step 1: Build Your Team (R.E. Agent, Lender, Attorney)​​​

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I highly recommend building your team in the order I suggest. Real estate agents are in constant contact with both lenders and attorneys. Since they have separate communication channels—client–lender–agent and client–attorney–agent—they’re in a unique position to observe, network, and recommend the most suitable lenders and attorneys. This can greatly improve your chances of having a smooth, successful transaction.

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1.1 Choose a Real Estate Agent​

A real estate agent is a valuable resource for anyone buying a home. They act as expert guides and provide objective information and opinions to help you find the right home that meets your needs and budget. They have access to the full range of available listings and can help you negotiate the best deal. A good real estate agent can stay up-to-date with changing laws and regulations, provide emotional support during home-buying, and ensure fair and ethical treatment.

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Who's Paying the Buyer's Broker's Fee?

In light of the recent NAR settlement, many buyers are questioning whether they’ll have to pay their broker’s commission directly. Understandably, this has caused some hesitation about working with a buyer’s agent. The truth is, most sellers in Manhattan are still paying the broker’s fee, making it an advantageous arrangement for buyers. But what are the chances that you, as the buyer, will end up paying any additional costs on top of the commission that the seller offers? Close to none. And if that ever becomes the case, I will let you know before showing the unit. You will never be blindsided.

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Buyer-Side Commission Real-World Data Analysis (Manhattan, December 2024)

In December 2024, 733 new listings hit the Manhattan market. Of those, 131 publicly disclosed buyer’s broker compensation, representing 17.6% of the total. Here’s how those commissions broke down:

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Breakdown of Buyer-Side Commissions:​

• 0 listings offered less than 2%

• 7 listings (5.34%) offered 2%

• 1 listing (0.77%) offered 2.25%

• 63 listings (48.09%) offered 2.5%

• 59 listings (45.04%) offered 3%

• 1 listing (0.76%) offered 4%

• 0 listings offered above 4%

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Key Takeaways​

• Less than 2.5% buyer-side commission was offered on only 6.11% of listings.

• Less than 3% buyer-side commission was offered on 54.2% of listings.

• The majority of listings (93.89%) offer commissions at or above 2.5%.

• Average buyer-side commission: 2.71% (slightly up from November’s 2.69%).

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Conclusion

As it can see be above, according to verified real-world data from December 2024, 100% of listings in Manhattan offered a buyer-side commission of 2% or more—making it very likely that the seller’s offer will fully cover your agent’s fee and you won’t pay any fee . In exchange, having an agent ensures you have a professional who will advocate for your interests, offer strategic market insights, and guide you toward securing the best possible deal throughout the complex Manhattan buying process.​

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1.2 Choose a Lender​

When purchasing real estate, it’s essential to not only work with an agent you trust but also to build a team of skilled professionals, including a Mortgage Broker or Banker, to streamline the process. Navigating New York City's real estate market requires specialized expertise, so having experts who can guide you through the complexities is invaluable.

If you're not purchasing in cash, it's critical to consult a mortgage broker or financial institution early on. They can help assess your financial situation and determine the loan size you qualify for. I recommend connecting with a mortgage professional as soon as possible to ensure you’re prepared to make competitive bids once we begin viewing properties.

I’m happy to share my top recommendations for mortgage professionals who can assist with your finances. However, feel free to explore other options to find the one that best aligns with your needs.

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1.3 Choose an Attorney​

Since New York is an attorney state, buyers are required to hire a real estate attorney to review and negotiate the contract of sale and represent them at closing.

Your attorney plays a key role in making sure the transaction runs smoothly. They’ll handle important responsibilities such as:

 

• Conducting due diligence

• Ordering a title report (checking for liens, violations)

• Reviewing the contract

• Providing documents required by your mortgage lender

• Determining the payment due at closing

• Representing you at the closing

I’d be happy to recommend trusted attorneys to assist with your closing. However, feel free to explore your options and choose someone who best understands your needs.

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Ready, set, go!

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Step 2: Financing

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When a buyer’s agent submits an offer, the listing agents typically request the following three items:

 

1. A pre-approval letter

2. Proof of funds showing enough to cover the down payment, closing costs, and post-closing liquidity (if purchasing a co-op)

3. A completed REBNY Financial Statement

 

In some cases, agents may only ask for either proof of funds or the REBNY Financial Statement—in which case providing just one will be sufficient.

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2.1 Get Pre-Approved for Mortgage

When a buyer’s agent submits an offer, the listing agents typically request a pre-approval letter. This letter, issued by a lender, estimates how much you’re likely qualified to borrow and helps establish your budget. More importantly, it signals to sellers that you're financially prepared to purchase a home. Pre-approval is different from pre-qualification. While pre-qualification is a rough estimate based on unverified information, pre-approval generally involves a more detailed review of your finances. Many lenders require documents such as pay stubs, bank statements, and tax returns to issue a pre-approval. However, some lenders may offer a "pre-approval" based solely on your credit report, income history, and other basic financial data—making it more similar to a pre-qualification, despite the name. Be sure to ask your lender what’s included in their process so you can gauge how seriously your pre-approval will be taken by sellers.​​

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2.2 Secure the Funds (Down Payment, Closing Costs, Post-Closing Liquidity)

As I mentioned previously, you need to present proof of funds when making an offer. If you need to transfer funds into your account to show proof of assets, be sure to do so in advance. If any portion of the money will be gifted—whether from a parent, spouse, or if the parents are purchasing the home for their child—it's important to disclose this to the listing agent. The seller may request proof of funds from the person providing the gift or the parents buying for children. Additionally, if it’s a co-op, confirm that gifting or parents buying for children is allowed by the building, as some co-ops restrict or prohibit these arrangements. In some cases, co-purchasing might be the solution if the building does not allow gifting or parents buying for children, but allows co-purchasing.

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2.3 Fill Out the REBNY Financial Statement

The REBNY Financial Statement is a standardized form used throughout New York City real estate to provide a clear picture of your financial position. Most sellers—especially in co-op transactions—require it before considering an offer. The form lists your assets, liabilities, income, and expenses, allowing the seller and their board to assess your financial stability and ability to close. Completing it accurately and thoughtfully is important, as it often determines how seriously your offer will be taken. If you’re unsure how to fill it out, your agent or lender can guide you through the process. You’ll need to include supporting documents like bank statements, investment account summaries, and any outstanding loan details. For co-op purchases, where financial scrutiny is higher, this form helps ensure that your liquidity, debt-to-income ratio, and post-closing reserves meet the building’s financial standards. Submitting a complete and well-prepared REBNY Financial Statement signals to sellers that you’re organized, transparent, and financially qualified—a valuable advantage in New York City’s competitive housing market.

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Step 3: Find Your Home

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3.1 Select the Neighborhood

To pick the right neighborhood for you, consider factors like affordability, the location of your work and schools in case you have children, and what your real estate agent suggests based on your needs. Explore the neighborhoods you’re interested in by visiting shops, restaurants, and public spaces. You can also use online tools and quizzes to help determine the best fit for your needs.

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3.2 Shop Around

Check the listings that your real estate agent shared with you based on your criteria. If you’d like to, you can expand your search by browsing real estate websites to get an idea of what’s available in your desired area. While doing that, don’t forget to eliminate neighborhoods that don’t meet your style, size, and price criteria. Your real estate agent will let you know when there is a price change in any apartments you’re interested in. Your real estate agent will also analyze and give you information about the history of each listing, including its length of time on the market and price changes, to determine if a home is overpriced or has been unsold for a long time. There’ll be a lot of back and forth between you and your real estate agent until you narrow your options to the homes you want to view in person.

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3.3 Tour Apartments

Let your real estate agent know which apartments you’d like to tour so they can schedule the appointments. Touring in person is crucial—it gives you a true sense of the space, layout, and natural light that photos or videos simply can’t capture. During showings, take your time to look closely at every detail: open closets and cabinets, pull back curtains, walk through outdoor areas, and ask questions about the building’s rules, utilities, maintenance, and any recent upgrades or renovations. It’s strongly recommended to schedule a second showing for any apartment you’re seriously considering making an offer on. This second visit serves as a pre-inspection opportunity. Take the time to look inside cabinets, check under the sinks, test the water pressure, ensure the air conditioning works properly, and look carefully for signs of leaks or water damage on ceilings or walls. Catching these details early can help you make a more confident, informed decision before proceeding with your offer.

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Step 4: Make An Offer​

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Finally, after carefully considering the pros and cons of the properties you’ve toured, you think you’ve found your ideal home and are ready to move forward.

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4.1 Evaluate the Market

To determine a fair offer, your real estate agent will provide you “comps” showing comparable homes of similar size that have recently sold in the area and assist you in creating an offer strategy that includes determining the room for negotiation.

Another benefit of having your real estate agent with you is preventing the conflict of interest that might occur if you don’t have one and the seller’s agent represents both you and the seller.

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4.2 Submit a Formal Offer

The formal offer should include the terms and conditions of the purchase, including payment information and any contingencies (if they haven’t been waived).

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Here’s something very few people talk about, but it’s one of the most crucial parts of the buying process—and a detail that only experienced, detail-oriented agents truly understand. As someone who has represented both buyers and sellers many times, I can tell you that the presentation of your offer can be just as impactful as the number on it. Think about it this way: two buyer’s agents submit offers for the same apartment. Agent A’s client offers $885,000 with a professionally presented package that includes all the terms, their attorney’s information (this is why having an attorney ready before you start is important—it signals you’re prepared and serious), a pre-approval letter, proof of funds, and a completed REBNY Financial Statement. Agent B’s client offers $890,000, but the offer comes as a two-sentence email with just the buyer’s name, general terms, and price. Now, even though Agent B’s offer is $5,000 higher, which buyer do you think the seller’s agent will recommend to their client? The seller’s agent might say, “We received two offers, but I suggest we move forward with Buyer A. Their offer is slightly lower, but they seem more serious, prepared, and far less likely to waste your time.” That professional presentation can give you a real competitive edge—simply because you chose to work with a knowledgeable, organized, and well-equipped real estate agent.

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Tip: Be Ready For a Bidding War

In a highly competitive market, where desirable homes are in high demand, you may have to be ready for a bidding war. While the highest offer is often the winner, making a solid first offer can give you an advantage.

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To make your offer stand out to the seller:

• Increase your down payment

• Be flexible about the closing date

• Be willing to waive contingencies
   

Your agent will provide you with the best strategy.

 

Tip: Avoid Emotional Attachment

This stage can be one of the most challenging parts of the buying process. Be prepared for setbacks—counteroffers and rejections are common. Even if a seller accepts your offer, they can still consider and accept others. In New York State, an offer isn’t legally binding until both parties have signed the contract. Even after you’ve signed and wired your deposit, it’s not official until the seller signs and returns it to you. That means sellers can still accept other offers until both sides have fully executed the contract. Even after that, issues can arise—for example, if you’re buying a co-op, the board can still reject the sale. That’s why having a skilled, experienced agent is so important—to guide the process, manage the moving pieces, and help you stay proactive through any complications. Once your offer is accepted, the journey to becoming a homeowner truly begins. It’s exciting to start picturing yourself in your new space, but it’s essential to stay focused and make sure the property is sound and the deal is fair.

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4.3 Negotiations

Remember that making an offer on a home is the beginning of a negotiation process. You want to pay as little as possible while still securing the home, while the seller wants to get the highest possible price. A convenient starting point for the first offer is 5% below the asking price, but this can vary based on market conditions. You will face multiple bidders in a competitive market, whereas you will have more bargaining power in a soft market. When making your first offer, keep your budget in mind and limit how much you are willing to pay. Your real estate agent will fully assist you during this process and tell you everything you need to know about the current market.​

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4.4 Review the Contract

Once you’ve agreed on the price, concessions, and closing timeline, your real estate agent and the seller’s agent will put together a “Deal Sheet” outlining the details of the transaction. This is then shared with the seller’s attorney, who will use it to draft the contract and send it to your attorney. Your attorney will review the contract, building financials, board minutes, and any contingencies—negotiating revisions if needed. It’s crucial to have a responsive real estate attorney who has time for you and is focused on protecting your interests.

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4.5 Conduct a Home Inspection

While your attorney is reviewing the contract, it’s time to have the apartment inspected before signing. A home inspection helps identify potential issues that could affect your decision to move forward—or give you leverage to negotiate repairs or credits. Inspections usually take one to three hours, depending on the property type and size. For condos and co-ops, the cost typically ranges between $500 and $800. If the inspection uncovers major issues, you can ask the seller to address them before closing or request a credit so you can handle the repairs yourself. Once both parties agree, these items can be included in the contract, usually as a rider. This ensures that any necessary work is documented and legally acknowledged.

 

It’s important to note that inspection reports are extremely detailed—they’ll point out even the smallest imperfections, such as worn hardwood floors, rusty fixtures with no leaks, or minor cosmetic flaws. In New York City, most apartments are sold “as is,” which means the property is being sold in its current condition, with no obligation on the seller’s part to make cosmetic or non-structural repairs unless otherwise stated. However, not every issue falls under “as is.” If the inspection reveals leaks, mold, cracked pipes, electrical issues, or even smaller but functional concerns like a broken doorbell or malfunctioning air conditioning, these are valid points for negotiation. Your real estate agent will help you understand which findings are reasonable to request repairs or credits for, and which are considered part of the property’s condition. A thorough inspection and an experienced agent’s guidance can help you protect your investment, avoid unpleasant surprises, and enter the contract with confidence—knowing exactly what you’re buying.​​

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4.6 Sign the Contract and Put the Deposit Down

You sign the contract and put the deposit down to the .

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4.7 Title Search and Lien Search

Your attorney will order a title search right after you sign the contract. Title search includes examining public records to determine and confirm a property’s legal ownership. Title searches are conducted through many sources, including deeds (*), tax liens, land records, and court judgments, among others. A clean title is required for any real estate transaction to be completed. Transactions cannot be completed if a title search determines a lien on the property. If the apartment is in a co-op building, it’s called a lien search instead of a title search, since co-ops don’t have individual titles.

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Step 5: Get the Loan Commitment Letter​

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Most co-op and condo boards require a loan commitment letter before they’ll review your board package. Your letter must be “clean,” meaning all conditions—especially anything related to the building’s approval—should be cleared before submission. This is different from the “conditional” commitment letter your lender issues shortly after contract signing. While you work on securing the clean version, we’ll begin assembling your board application so it’s ready to submit the moment your letter is finalized.

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5.1 Start Working on Securing the Loan

This step often takes the most time in the process. Once your contract is fully executed, begin working closely with your lender to move from pre-approval to a formal loan commitment. While you may already have pre-approval, lenders usually need additional documents before finalizing your loan.

 

They may ask for:

– Updated bank statements

– Recent pay stubs or income verification

– Employment verification (especially if there’s been a recent change)

– Letters explaining large deposits or financial gifts

– Proof that funds for the down payment and closing costs are in a U.S. account (for international buyers)

– Confirmation of any outstanding debts or liabilities

 

Respond quickly and accurately to keep your mortgage on schedule and prevent delays that could affect your closing timeline.

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5.2 Get an Appraisal

Before your lender finalizes the loan, they’ll order an appraisal to confirm the property’s market value aligns with the amount you’re borrowing. The appraiser evaluates factors like layout, square footage, condition, and recent comparable sales. Although the lender selects the appraiser, you can request confirmation that they’re licensed and experienced in your neighborhood. If you have concerns, you can ask the lender to assign a different appraiser.

 

Appraisal fees, typically paid by the buyer, range from $400 to $1,500 depending on the property’s size and complexity.

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Step 6: Board Application (Condos and Co-ops Only)​

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Once you get your loan commitment letter, the next critical step is the board application and approval process. Unlike single-family or multifamily homes, condos and co-ops require you to meet certain criteria set by the building’s governing body. By understanding what’s required, following instructions meticulously, and presenting yourself as a financially sound, community-minded resident, you can help ensure a smoother path to approval. Here’s what you need to know, from start to finish:

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Understanding the Purpose of the Board Application

Condos and co-ops have boards that maintain standards for who can live in the building. These governing bodies want to ensure that future residents will be financially responsible, respectful community members who contribute to the overall harmony of the property.

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Tailoring Requirements to Your Property Type

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• Co-op Boards: These are often the most thorough and stringent. They have significant discretion in deciding who is approved and may request interviews, additional documents, or clarifications. Approval is not guaranteed, so it’s essential to present a well-prepared, polished package.

• Condo Boards: While typically less restrictive than co-ops, condo boards still require documentation and sometimes personal interviews. Their primary focus tends to be on financial stability and adherence to building rules.

• Single-Family & Multifamily Homes: If you’re purchasing a single-family or multifamily home, there’s no board approval process. After the contract is signed and inspections are completed, you can proceed directly to closing.

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Timelines and Variations

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• Timing: The board review process typically takes  a week or two, but it could be longer depending on how busy the board is.  Delays may occur due to incomplete documentation, high application volume, or additional questions from the board. The common reviewing time of a week or two is after all the questions are answered and you submit a complete application.

• Communication: Your real estate agent and attorney will guide you through the process, helping to ensure all documents are complete and submitted promptly. Keep open lines of communication to address any board requests quickly.

 

6.1 Prepare Your Documents

Your board application (often referred to as the “board package”) typically includes:

 

• Financial Documents: Tax returns, pay stubs, bank statements, and proof of funds demonstrating your ability to meet monthly maintenance or common charges.

• Personal Information: Personal and professional references, employment history, and sometimes letters of recommendation.

• Purchase Details: A copy of the signed contract, loan commitment letter (if financing), and any other closing-related documents.

• Application Forms and Fees: Each building has its own set of forms and processing fees, so follow instructions carefully.

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Staying Organized and Proactive

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Checklists: Use a checklist to track required documents, fees, and deadlines.
Follow Instructions Exactly: Every building’s application process is unique. Carefully follow the board’s instructions to avoid delays.
Be Responsive: If the board requests additional information, provide it as soon as possible.

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If it's condo, you're good to move forward to the next step once your package gets approved. If it's a co-op, the board will reach out to your agent to schedule an in-person or a virtual interview which is the final step of the board application in a co-op.

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6.2 The Interview (Co-ops Only)

As mentioned previously, in NYC, co-op boards require a personal interview. Your real estate agent will give you crucial tips on how to prepare for this interview. To prepare:

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• Be Professional: Dress appropriately, be on time, and have a polite, friendly demeanor.

• Know Your Documents: Be familiar with what you submitted and ready to clarify any details.

• Demonstrate Commitment: Show that you intend to be a responsible, long-term community member.

 

The board typically makes their final decision a day or two after the interview, ​​​

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Step 7: Closing

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7.1 Get Homeowners Insurance

To protect your investment, you’ll need to purchase homeowners insurance, which lenders typically require. Your lender will ask for proof of insurance before issuing a “clear to close.” Homeowners insurance helps safeguard your property against damage, theft, or liability claims. You can often save money by bundling your homeowners and auto insurance policies with the same provider.

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7.2 Bank Issues Clearance to Close

Once your lender has reviewed all final documents—such as the appraisal, title report, insurance proof, and updated financials—they’ll issue a “clear to close.” This is the lender’s official approval to move forward with closing, confirming that all underwriting conditions have been satisfied. Essentially, it means you’re ready to sign your loan documents and complete the purchase.

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7.3 Attorneys Schedule Closing

After your lender issues the clear to close, your attorney and the seller’s attorney will coordinate a closing date that works for all parties, including both agents and the title company (if applicable). The closing typically takes place at one of the attorneys’ offices, the managing agent’s office (for co-ops), or at a title company. Your attorney will confirm the final numbers with the lender and provide a breakdown of the funds you’ll need to bring to closing.

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7.4 Final Walk-Through

Before closing, you’ll do a final walk-through with your real estate agent to make sure the property is in the same condition as when you made your offer—and that all agreed-upon repairs or inclusions are in place. Try to schedule it during daylight hours so you can check everything clearly. Turn on all lights, run faucets, test appliances, flush toilets, and check for any new issues like leaks, damage, or items left behind. If anything isn’t as agreed, your agent can request a credit or repair adjustment at closing.

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7.5 Get Title Insurance

When buying a condo, townhouse, or single-family home (not a co-op), you’ll need to purchase title insurance—usually required by your lender. Title insurance protects you and your lender from any ownership disputes, liens, or legal claims that may arise after closing. The first year’s premium is typically paid upfront at the closing table. You can find reputable title insurance providers through the American Land Title Association’s database.

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7.6 Close the Deal

Closing day is the final step in your home-buying journey. You, the seller, and your respective representatives will sign all necessary documents to officially transfer ownership. Bring a certified or cashier’s check (or arrange a wire transfer) to cover your share of closing costs, which may include mortgage recording tax (for condos and houses), mansion tax (for homes over $1 million), transfer taxes, attorney fees, and title insurance. Once the funds are distributed and documents are signed, the deed is recorded, and you officially become the owner of your new home.​​

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7.7 Congratulate Yourself!

You’ve done it! The apartment is now yours. Grasp the keys tightly and relish the excitement of entering your new home for the first time. Imagine the wonderful life you’ll lead within its walls.

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Step 8: Post-Closing

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Before settling in, complete these essential post-closing tasks to ensure a seamless transition:

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8.1 Coordinate With the Building’s Managing Agent

Schedule your move-in date, confirm elevator reservation procedures, and pay any move-in or refundable deposits.

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8.2 Transfer Utilities

Set up electricity, gas, and internet in your name. In co-ops and condos, verify which utilities are included in your maintenance or common charges.

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8.3 Change Your Address

Update your address with USPS, your bank, employer, insurance companies, and subscriptions.

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8.4 File for Tax Abatements or Exemptions

If eligible, apply for programs such as the NYC Cooperative and Condominium Tax Abatement or the STAR exemption to reduce your property taxes. Consult your accountant.

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8.5 Review Warranties and Service Contracts

Keep records of any warranties for appliances, HVAC systems, or building systems included in the sale.

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8.6 Secure Important Documents

Store your closing documents, title policy, homeowner’s insurance, and any co-op stock certificates or proprietary leases in a safe place.

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8.7 Get to Know Your Building

Review house rules, board contacts, and amenity access instructions to familiarize yourself with your new community.​