First-Time Buyer Checklist for 2025: What to Know Before Jumping In

Buying your first home in New York City is exciting—but it can also feel overwhelming if you're not prepared.

With new updates in lending, taxes, and fees specific to NYC, it’s more important than ever to go in with your eyes wide open. Here’s a practical, up-to-date guide to help first-time buyers navigate the 2025 market.

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1. Know What You Can Afford—And Get Pre-Approved

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Before anything else, sit down with a lender and figure out what you qualify for. Lending standards have shifted slightly in 2025, with stricter debt-to-income ratio caps and a stronger emphasis on consistent income.

Get a pre-approval letter, not just a pre-qualification—it holds more weight when you’re making offers in competitive NYC neighborhoods.

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2. Budget for Closing Costs (NYC Adds a Few Extras)

Beyond your down payment, NYC has some unique fees. These include:

• Mansion Tax: Kicks in at $1 million and up.
  
  
• Mortgage Recording Tax: Applies to most condo and house purchases (not co-ops).
  
  
• Title Insurance & Attorney Fees: Standard across the board, but budget a few thousand.
  Expect closing costs to land somewhere between 2% and 5% of your purchase price, depending on the property type.
  

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3. Understand the Tax Benefits (Especially If You Bought in 2025)

First-time buyers in 2025 could see some relief under updated tax policies, especially if you're buying a primary residence. Look into:

• Mortgage interest deductions
  
  
• First-time buyer credits (if applicable)
  
  
• NYC STAR Program (School Tax Relief) for owner-occupied homes
  
  

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It’s smart to speak with a tax advisor early so you know how your purchase affects your 2025 filing.

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4. Consider Co-op vs. Condo vs. House

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Each property type comes with different approval processes and costs.

• Co-ops: Lower purchase prices but strict board approvals and monthly maintenance.
  
  
• Condos: More flexibility, higher price tags, and monthly common charges.
  
  
• Townhouses/Houses: Full ownership, higher responsibility (and more potential long-term equity).
  
  

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Each option works differently when it comes to financing and taxes—especially in NYC.

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5. Factor in Long-Term Ownership Costs

Monthly payments go beyond mortgage and taxes. You’ll need to plan for:

• Home insurance
  
  
• Building maintenance/common charges
  
  
• Potential assessments (in co-ops/condos)
  
  
• Unexpected repairs
  
  

Don’t stretch your budget to the max; give yourself breathing room for what comes after closing day.

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Buying your first home in 2025 is absolutely possible, even in NYC. But you need to do your homework. Understand the new lending criteria, account for local taxes and fees, and partner with a realtor who knows the city inside and out. You’ll thank yourself later.

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Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.

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