How to Buy a Home in NYC: The Step-by-Step Process

Buying a home in New York City follows eight steps. Set a budget, get pre-approved, search, make an offer, hire a real estate attorney, sign the contract and pay the deposit, get lender and (for co-ops) board approval, then close. NYC differs from most of the country in a few ways that catch first-time buyers. An accepted offer isn't binding. Attorneys, not agents, draft and negotiate the contract. A deposit of about 10% is normally due when you sign. A co-op board can still turn you down after all of that.

Use the checklist at the bottom to track your progress. Each step links to a deeper Roofy guide or calculator.

Step 1: Set a real budget, including NYC closing costs

Lenders look at your debt-to-income ratio. Co-ops often add their own stricter tests for debt-to-income and post-closing savings, set by each building. Start with the home affordability calculator. Then add costs that are bigger in NYC than elsewhere:

• Mansion tax: New York charges 1% of the price on residences sold for $1 million or more, and additional supplemental rates in NYC from $2 million. State law says this applies to condo units and co-op apartments, not just houses. Estimate it with the mansion tax calculator.
• Mortgage recording tax: charged when a mortgage on a house or condo is recorded. The NYC Department of Finance says mortgages on individual co-op apartments don't incur it. See the mortgage recording tax calculator.
• Title insurance, attorney, bank and building fees. Add them all up with the NYC closing cost calculator.

First-time buyers should check HomeFirst. HPD's program offers up to $100,000 toward the down payment or closing costs on a one- to four-family home, condo or co-op. It has income limits (up to 120% of area median income), price limits, a homebuyer education course, and a requirement that at least 3% of the price comes from your own funds. Try the HomeFirst checker.

Step 2: Get pre-approved

In NYC, sellers and their agents expect a pre-approval letter with an offer, and co-op listings often ask for a financial statement too. Collect two years of tax returns, recent pay stubs, bank and investment statements, and an explanation of any large deposits. See mortgage pre-approval. If you are paying cash, have proof of funds ready.

Step 3: Pick a property type and search

Most NYC apartments for sale are co-ops or condos, and the difference changes your costs, approvals and financing. Read co-op vs condo, or buying a townhouse or house if you want a whole building. Browse homes for sale on Roofy. Before you fall for a place, check the building's public record on Roofy's NYC building lookup for violations, permits and past sales.

Step 4: Make an offer (it's not binding yet)

In NYC an offer is usually an email from your agent with the price, your down payment, financing, any contingencies and your target closing date. When the seller accepts, the listing agent sends a deal sheet to both attorneys. Nothing is binding at this point. New York's General Obligations Law makes a contract for the sale of real property void unless it is in writing and signed by the party being held to it. Co-op shares are technically personal property, but in practice co-op deals also become binding only when the written contract is signed. Until then, either side can walk away, and other buyers can still bid. See how to make an offer.

Step 5: Hire a real estate attorney and do due diligence

In NYC, the seller's attorney drafts the contract. Your attorney reviews it, negotiates changes and does due diligence before you sign. For co-ops and condos, that means reading the building's financial statements, board minutes and offering plan amendments. They look for special assessments, lawsuits, a flip tax, sublet rules and the building's finances. See what a real estate attorney does and the co-op due diligence checklist. For a house, schedule a full home inspection now, before you sign.

Step 6: Sign the contract and pay the deposit

You sign first, then send the deposit, typically 10% of the price. The seller signs and returns a fully signed contract. The deposit is normally held in escrow by the seller's attorney until closing. The key protection is the mortgage contingency. If you don't get a loan commitment by the contract date, you can usually cancel and get the deposit back. Miss the deadlines or walk away for other reasons, and the deposit can be at risk. See the contract deposit.

Step 7: Lender approval and (for co-ops) the board

After contract, your lender orders an appraisal and underwrites the loan, ending in a commitment letter. A co-op purchase has a second approval. You submit a board package with your financials, tax returns, reference letters and the lender's commitment. Then comes a board interview and a decision. Condos usually waive their right of first refusal instead (see condo right of first refusal). Check whether your finances clear a typical co-op with the co-op board approval calculator.

Step 8: Closing

Federal rules require your lender to give you the Closing Disclosure at least three business days before closing. Compare it line by line with your Loan Estimate (see how to read both). Do a final walk-through within a day or two of closing. NYC closings are usually in person at an attorney's or the lender's attorney's office, or the managing agent's office for co-ops. You'll pay the balance, transfer taxes and fees, and get the keys. Bring the closing day checklist, then read what to do after closing.

How long it takes

1. Before you search

   Budget and pre-approval

   Gather documents; check HomeFirst if you are a first-time buyer.

2. Search

   Tour, compare, check building records

   Short-list homes and look up each building.

3. Offer accepted

   Deal sheet to attorneys

   Not binding. Attorney due diligence and inspection begin.

4. Contract signed

   Deposit paid; contingency clock starts

   Apply for the mortgage right away if you haven’t.

5. After contract

   Appraisal, loan commitment, board package

   Co-op board review adds the most time.

6. Approval

   Schedule closing

   Closing Disclosure at least 3 business days before.

7. Closing day

   Sign, pay, get keys

   Record the deed (house/condo) or receive shares and lease (co-op).

Co-ops usually take longer than condos because of the board. For realistic ranges, see the contract-to-closing timeline.

Your NYC buying checklist

Tick off each step as you go. Your progress is saved in this browser.

Not sure you should buy at all? The rent vs buy calculator and should I rent or buy in NYC walk through the trade-off.