First-time buyers
Your first home in New York, step by step.
New York does things its own way: attorneys write the contract, deposits are real money, and the timeline runs on the lender. Here is the honest version, plus the state programs worth applying for.
Start here
What makes buying in New York different.
In most of the country an agent writes the contract. In New York, attorneys do. You make an offer, the two attorneys negotiate and prepare the contract, and the deal is not binding until both sides sign and your deposit is delivered to the seller attorney's escrow account.
That one difference sets the pace for everything else: inspection happens before you sign, the deposit is usually a meaningful percentage of the price, and the closing date moves with your lender's commitment rather than a date printed on page one.
The process
How the purchase runs.
Every file is a little different, but this is the order things happen in for a financed purchase in our markets.
01
Get pre-approved
A lender pulls credit, reviews income and assets, and issues a pre-approval. Sellers here rarely take an offer seriously without one.
02
Offer and acceptance
We present price and terms in writing. Acceptance in New York is not yet a contract, so the work is not over when the seller says yes.
03
Inspection
You inspect before signing, which is when you still have full leverage to renegotiate or walk. Add radon, septic, well, or oil-tank checks where the property calls for it.
04
Contract and deposit
Attorneys finalize the contract, both sides sign, and your deposit goes into escrow. This is the moment the deal becomes real.
05
Appraisal and commitment
The lender orders the appraisal, finishes underwriting, and issues a written mortgage commitment. Most contracts give you a defined window for this.
06
Title, survey, and clearance
Your attorney orders title and resolves anything that turns up: old liens, easements, open permits, or an unsatisfied prior mortgage.
07
Walkthrough and closing
You see the house again the day of or the day before, then sign at closing. In New York the buyer, seller, both attorneys, and the lender's representative are typically all part of that table.
Down payment assistance
SONYMA and the state's Down Payment Assistance Loan.
The State of New York Mortgage Agency (SONYMA) offers low-interest mortgages built for first-time buyers, including the Achieving the Dream and Low Interest Rate programs. Income and purchase price limits apply and vary by program, region, and property type, so the current limits for Orange County are worth pulling before you shop.
The Down Payment Assistance Loan (DPAL) can be added to any SONYMA mortgage. It carries a 0% interest rate, no monthly payments, and is forgiven after 10 years. The minimum is $1,000 and the maximum is 3% of the purchase price up to $15,000, or $3,000, whichever is higher.
Two things to plan around: interest rates on first mortgages with a DPAL attached run 0.40% higher than without (that surcharge does not apply to the Graduate to Homeownership, Homes for Veterans, or ENERGY STAR programs), and you still make a minimum cash contribution of 1% of the property value, or 3% for co-ops and 3- to 4-family homes.
If you sell or refinance inside the first 10 years, part of the DPAL may have to be repaid. The repayable amount drops by 1/120 for each month you live in the home, and if a sale does not net enough to cover it, the shortfall is forgiven.
Numbers to know
2026 figures.
$15,000
DPAL maximum
3% of purchase price up to $15,000, or $3,000, whichever is higher (SONYMA)
0%
DPAL interest rate
No monthly payments; forgiven after 10 years
$832,750
Conforming loan limit
2026 baseline for a one-unit home (FHFA)
$1,249,125
High-cost area ceiling
2026 one-unit ceiling; applies in designated high-cost counties (FHFA)
After you close
Do not skip these.
Two of them save you money every single year.
- Register for the STAR credit. If you own the home, live in it as your primary residence, and the combined income of the owners and their spouses is $500,000 or less, you qualify for Basic STAR. It applies to school taxes.
- If an owner is 65 or older, check Enhanced STAR instead. The income limit is $110,750 for the 2026-2027 school year and $113,550 for 2027-2028.
- Ask your town assessor which other exemptions your jurisdiction offers, including veterans, senior, and agricultural exemptions. Most have a taxable status date of March 1.
- Keep your closing statement. It matters for your first tax filing and again the day you sell.
Keep reading
Other guides
Financing
Tour with your number already settled.
A pre-approval tells you what you can actually spend before you fall for a house, so you are comparing real options instead of guessing.
It also changes how your offer reads. Listing agents and sellers treat a buyer with a letter in hand as someone who can close, and in a competitive room that credibility often matters as much as the price.
Jeffrey is a licensed mortgage professional and can turn a pre-approval around the same day. There is no cost to get one.
Same day turnaround
Get Your Same Day Pre-Approval Now
Start your application with Jeffrey and know your numbers before your next showing.
Get Your Same Day Pre-Approval NowGet in touch
Let's talk about your next move.
Buying, selling, or just wondering about timing? Send a note and Jeffrey will get back to you himself.
1177 6th Avenue, 5th Floor, New York, NY 10036
(845) 713-3938
jeffreymorrisseyrealtor@gmail.com
Programs, limits, and legal requirements change. Confirm current terms with the agency or your attorney before you rely on anything here. Sources: SONYMA (NYS Homes and Community Renewal) · SONYMA Down Payment Assistance Loan · FHFA 2026 conforming loan limit values · NYS Tax & Finance: STAR eligibility · NYS Tax & Finance: types of STAR