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First-Time Buyer Guide

From Renter
to Owner.

Your step-by-step guide to achieving homeownership in New York City.

Milton Coste

Licensed Real Estate Associate Broker

25+ Years Experience • 1,000+ Transactions

The Question Every Renter Asks

Why Buy Now?

The Rent vs. Buy Reality

Every month you pay rent, you're building someone else's wealth. When you own, your monthly payment builds equity—your own investment that grows over time.

NYC Rent Keeps Rising

Manhattan rents have increased 40%+ over the past decade. A fixed-rate mortgage means your housing cost stays predictable for 30 years.

Tax Advantages

Homeowners can deduct mortgage interest and property taxes, potentially saving thousands annually on federal and state taxes.

10-Year Comparison

Renting @ $3,500/mo

-$420,000

Total paid, $0 equity built

Owning @ $4,200/mo (includes taxes)

+$180,000

Approximate equity built (principal + appreciation)

$600,000

Net difference over 10 years*

*Assumes 3% annual appreciation. Actual results vary.

Self-Assessment

Are You Ready?

✓ Financial Checklist

  • ● Credit Score 680+ — Higher scores get better rates
  • ● Steady Income — 2+ years of employment history
  • ● Down Payment Savings — 10-20% of purchase price
  • ● Emergency Fund — 3-6 months of expenses
  • ● Debt-to-Income Ratio — Below 43% (ideally 36%)

♡ Lifestyle Checklist

  • ● Planning to Stay 5+ Years — Long enough to build equity
  • ● Career Stability — Confident in job/income trajectory
  • ● Know Your Priorities — Location, space, commute needs
  • ● Ready for Responsibility — Maintenance, repairs, HOA rules
  • ● Time to Search — NYC buying takes 3-6 months typically

Not sure where you stand?

Free Readiness Assessment

Understanding Your Options

Co-op vs. Condo

Co-op

~75% of NYC apartments

✓

Lower Purchase Price

Typically 10-20% less than comparable condos

✓

Lower Closing Costs

No mortgage recording tax on share loans

!

Board Approval Required

Rigorous application and interview process

!

Financing Restrictions

Many require 20-25% down minimum

!

Subletting Limits

Board controls rental policies

Condo

~25% of NYC apartments

✓

Real Property Ownership

You own the unit, not shares

✓

Flexible Financing

As low as 10% down, easier approvals

✓

Easier to Rent Out

Fewer restrictions on subletting

!

Higher Price Point

Premium for ownership flexibility

!

Higher Closing Costs

Mortgage recording tax applies (1.8-2.5%)

For first-time buyers, I often recommend co-ops for lower entry costs and condos for investment flexibility.

Financing Your Purchase

Down Payment Options

10%

Minimum for Condos

  • • FHA/Conventional loans available
  • • Private mortgage insurance (PMI) required
  • • Best for: Cash-conscious buyers
  • • Monthly payment: Higher
20%

Standard / No PMI

  • • Most co-ops require 20% minimum
  • • No PMI = lower monthly payment
  • • Best for: Balanced approach
  • • Strongest negotiating position

MOST COMMON

50%+

All-Cash Competitive

  • • Luxury co-ops may require 50%+
  • • All-cash = fastest close
  • • Best for: Competitive situations
  • • Often wins multiple-bid scenarios

First-Time Buyer Programs

SONYMA (State of NY Mortgage Agency)

Low down payment options, below-market rates for qualified buyers. Income and purchase price limits apply.

HomeFirst Down Payment Assistance

Up to $100,000 forgivable loan for eligible NYC buyers. Must complete homebuyer education course.

FHA Loans

As low as 3.5% down for condos in FHA-approved buildings. More flexible credit requirements.

Conventional 97

Just 3% down from Fannie Mae/Freddie Mac. Ideal for buyers with good credit but limited savings.

Know Your Numbers

True Cost Calculator

Enter Your Numbers

Upfront Costs

Down Payment $150,000
Closing Costs (est. 3-5%) $30,000
Total Cash Needed $180,000

Monthly Payment

Mortgage (P&I) $3,792
HOA/Maintenance $1,200
Est. Property Tax $625
Total Monthly $5,617

*Estimates only. Actual costs vary by property and lender.

What to Expect

The NYC Timeline

Week 1-2 Pre-Approval

Get pre-approved by a lender. Know your budget. Meet with Milton to discuss goals.

Week 2-8 Property Search

View properties, attend open houses, narrow down neighborhoods. Average: 10-20 viewings.

Week 8-10 Offer & Negotiation

Submit offer with Milton's market analysis. Negotiate terms. Sign contract (10% deposit due).

Week 10-14 Due Diligence

Attorney review. Inspection. Co-op board package (if applicable). Mortgage processing.

Week 14-16 Closing Day!

Final walkthrough. Sign closing documents. Get your keys. Welcome home!

*Co-ops may take 4-8 weeks longer due to board approval process.

Hidden Costs Revealed

NYC Closing Costs

CO-OP Co-op Closing Costs

Attorney Fees $2,500 - $4,000
Mansion Tax (over $1M) 1% - 3.9%
Title Insurance (lender) $400 - $800
Bank/Lender Fees $1,000 - $2,000
Move-in Deposit $500 - $1,500
Typical Total 2-3%

CONDO Condo Closing Costs

Attorney Fees $2,500 - $4,000
Mortgage Recording Tax 1.8% - 2.5%
Title Insurance (owner + lender) 0.4% - 0.6%
Mansion Tax (over $1M) 1% - 3.9%
Bank/Recording Fees $2,000 - $4,000
Typical Total 4-6%

On a $750,000 purchase:

~$18,750

Co-op (2.5%)

~$37,500

Condo (5%)

First-Time Buyer Hotspots

Best Value Neighborhoods

Washington Heights

Washington Heights

Upper Manhattan

Median Co-op $468K
Median Condo $400K

Prewar charm, parks, great transit

Inwood

Upper Manhattan

Median Co-op $385K
Median Condo $450K

Parks, family-friendly, value

Harlem

Upper Manhattan

Median Co-op $525K
Median Condo $675K

Culture, dining, historic brownstones

Astoria

Queens

Median Co-op $425K
Median Condo $550K

Diversity, food scene, easy commute

Jackson Heights

Queens

Median Co-op $350K
Median Condo $475K

Value, diversity, garden apartments

Bay Ridge

Brooklyn

Median Co-op $375K
Median Condo $500K

Waterfront, family area, value

*Prices are approximate median values. Contact Milton for current market data.

Learn From Others

Mistakes to Avoid

✗

Skipping Pre-Approval

Falling in love with a home you can't afford—or losing it to a pre-approved buyer.

→ Get pre-approved FIRST

✗

Ignoring Total Monthly Costs

Forgetting maintenance, taxes, and assessments can blow your budget.

→ Calculate ALL monthly costs

✗

Not Using a Buyer's Agent

The seller pays your agent's commission—you get expert guidance for free.

→ Buyer representation is FREE

✗

Waiving Inspection

Hidden issues can cost tens of thousands. Always inspect (even in competitive markets).

→ Always get a home inspection

✗

Making Big Purchases Before Closing

New car, furniture, or credit cards can tank your mortgage approval.

→ Freeze spending until you close

✗

Not Reviewing Building Financials

Underfunded reserves or pending assessments can mean surprise costs.

→ Have your attorney review financials

Your First-Time Buyer Advantage

Why Milton?

★

25+ Years NYC Experience

I've helped hundreds of first-time buyers navigate NYC's unique market. I know every neighborhood, building type, and financing option.

★

Co-op Board Expertise

I prepare bulletproof board packages. My clients have a 98%+ board approval rate. I know what boards want to see.

★

Lender & Attorney Network

Trusted partners who specialize in NYC real estate. Competitive rates and smooth closings.

★

Free Buyer Representation

Commission is paid by the seller. You get expert guidance, negotiation, and protection at no cost to you.

Milton Coste

Milton Coste

Licensed Real Estate Associate Broker

Keller Williams NYC

25+

Years

1,000+

Deals

98%

Board Approval

Schedule Free Consultation

Real Results

First-Time Buyer Success

★★★★★

"Milton guided us through our first co-op purchase. He explained everything—from board packages to closing costs. We never felt lost."

Sarah & David M.

First-time buyers, Washington Heights

2BR Co-op • $485,000

★★★★★

"As a single buyer, I was nervous about competing. Milton found me an amazing condo and negotiated $15K below asking. Incredible experience."

Jennifer L.

First-time buyer, Astoria

1BR Condo • $425,000

★★★★★

"We thought buying in NYC was impossible. Milton connected us with a down payment assistance program and we're now homeowners!"

Michael & Amy K.

First-time buyers, Harlem

2BR Condo • $595,000

Start Your Journey

Your First 3 Steps

1

Schedule a Call

Free 30-minute consultation to discuss your goals, timeline, and budget.

Book Now
2

Get Pre-Approved

I'll connect you with trusted lenders who specialize in NYC first-time buyers.

Milton's Lender Network

3

Start Searching

Customized property alerts, private tours, and expert neighborhood guidance.

View Listings →

Let's Make It Happen

Ready to Own Your Home?

From first conversation to closing day, I'll guide you through every step. Your dream of NYC homeownership starts with a single call.

Schedule Call Call Now
Milton Coste

Milton Coste

Licensed Real Estate Associate Broker

Keller Williams NYC

mcoste@kw.com | (917) 555-1234

Equal Housing Opportunity

We are committed to the Fair Housing Act. Equal Housing Opportunity.