Buying your first home in New York City is exciting. It’s also one of the few experiences where spending hundreds of thousands of dollars is considered a good reason to celebrate.

But before you start touring Brooklyn brownstones or imagining your furniture in a Queens condo, there’s some financial housekeeping to handle.

For any first-time NYC homebuyer, two steps should come before serious house hunting: saving for a down payment and getting mortgage pre-approved.

Neither is particularly glamorous. Then again, neither is discovering you can’t afford your dream home after you’ve already picked out the curtains.

Step 1: Start Saving for Your Down Payment

You’ve probably heard that buying a home requires a 20% down payment. On an $800,000 property, that’s $160,000. Enough to make anyone reconsider the merits of a rent-stabilized apartment.

Fortunately, you don’t always need 20% down to buy a home in NYC.

Depending on your qualifications and loan program, some conventional mortgages allow down payments as low as 3%. FHA loans may require as little as 3.5%, and eligible buyers may qualify for down payment assistance programs.

But putting less money down can mean higher monthly payments and additional mortgage insurance expenses.

The smartest approach is to establish a realistic savings goal based on your income, expenses, and anticipated purchase price.

And don’t forget that your down payment isn’t your only expense. You’ll also need money for closing costs, which may include attorney fees, title insurance, lender charges, and applicable taxes.

My advice? Build your savings before you build your wish list. And keep an emergency fund. Owning a home is wonderful, but refrigerators have an uncanny ability to break immediately after closing.

Step 2: Get Mortgage Pre-Approved Before House Hunting

Once you’ve started saving, it’s time to find out how much home you can realistically afford.

That’s where mortgage pre-approval comes in.

A lender reviews your income, credit history, debts, and financial assets to determine how much you may qualify to borrow.

Unlike a basic pre-qualification, mortgage pre-approval generally involves a more thorough financial review.

Why does this matter?

Because in the competitive NYC real estate market, sellers want reassurance that you can obtain financing, not just that you have excellent taste in kitchen countertops.

Pre-approval also helps you:

Establish a realistic homebuying budget
Understand your estimated monthly mortgage payments
Identify financial issues before making an offer
Strengthen your position when negotiating with sellers

What About Today’s Mortgage Rates?

Interest rates play a major role in affordability.

According to Mortgage News Daily, the average 30-year fixed mortgage rate was 7.27% as of October 30, 2026, down from 7.35% just two days earlier.

That’s a reminder that mortgage rates can change quickly. And even small differences can affect your monthly payment over 30 years.

Your actual rate will depend on factors including your credit score, down payment, loan type, and lender. Pre-approval isn’t a rate guarantee or final loan approval.

The lesson? Don’t try to predict the perfect moment to buy. Work with a knowledgeable mortgage professional to understand your options and what you can comfortably afford.

Start Smart. Bring Cornerstone In Early.

Saving for a down payment and getting pre-approved are your first financial steps. But assembling the right team early is just as important.

At Cornerstone, we encourage NYC homebuyers to involve their title company from the beginning, not just when closing day approaches.

With experience gained from more than 17,000 real estate transactions, we can help connect you with trusted mortgage professionals, attorneys, and real estate experts who share our commitment to transparency, integrity, and exceptional service.

We can also help identify potential title issues before they become expensive surprises.

Whether you’re buying in NYC, Long Island, or Westchester, preparation is your best investment.

Ready to begin your homebuying journey? Contact Cornerstone and download our Homebuyer’s Guide.

Because the only surprise you should want when buying a home is finding out the previous owner left you a perfectly good wine refrigerator.

George Kordas

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I had a great experience connecting with Dorian Lam and the team at Cornerstone Land Abstract. Dorian was professional, responsive, and helpful throughout our communication. He was proactive, knowledgeable, and easy to work with, which is exactly what you want when dealing with real estate closings and title matters. I appreciate the level of service and look forward to working together on future transactions.

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What a pleasure to deal with. I made one call to Dorian, and his team took care of everything. The price was competitive and the communication and follow up from his team was outstanding. I wish my other transactions could be handled this well. Thank you so much and keep it up

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Everyone on the Cornerstone team is responsive, knowledgeable, and available to explain exactly what’s needed to get a deal to closing. That level of communication is invaluable during the often chaotic final stages of complex transactions. I’ve trusted them with multiple deals and look forward to continuing to work together.

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I've been using them exclusively as my title company for more years than I can remember. Great service, very professional and always available for all my needs.

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My experience with Cornerstone is uniformly positive. They are prompt, responsive, accessible & reliable. With so much competition in the title industry, they truly stand out.