Buying a home or a piece of property is a big deal no matter who you are — but especially if you’re a first-time buyer in New York City. Setting a timeline for your first real estate investment is a good choice to ensure you’re making all the necessary decisions.

Everyone is different, which means each person, couple, or family will have their own needs when it comes to laying out the timeline. For some, it may take a couple of years to gather the funds and settle on a location in New York’s competitive real estate market. For others, six months may be all you need.

If you’re looking into setting up your timeline to invest in a home, it’s more about your place in life than it is about time itself. When it comes to knowing what to look out for, here is how you can start to build your timeline to invest in property for the first time.

Keep Track of Your Credit Score

If you already know you have fantastic credit, this should be an easy one. If you aren’t sure, it’s definitely worth looking into. Flaws in your credit can lead to higher interest rates when you apply for loans, which is a big deal for large investments such as housing.

Many websites offer free credit scores or credit scores for a low cost. Check yours now, so you know where you stand.

Assess Your Debts

First thing’s first: having debt does not mean you can’t purchase real estate. In fact, some debt is okay as long as you manage it well. It’s all about what kind of debt you have, how much you can afford to take on, and what that debt looks like in context with the rest of your finances.

For some people, paying off any and all debts before buying a home is optimal for financial stability and peace of mind. But that doesn’t mean having things like student loans or medical bills needs to trap you forever if you have a plan to slowly pay them off. Figure out what works for you and go from there.

Figure Out What You Want

Here comes the fun part. While thinking about the credit and debt is the first step to property ownership, what’s just as important — or arguably more important — is envisioning what kind of home you want.

New York can be a challenging place to buy property, but it also has lots of opportunity for ambitious buyers. Do you want to save for an apartment you can call your own? Look to rent out real estate for additional income? Or pursue a home that provides privacy and stability in the city that never sleeps?

Having the conversation with your partner, or yourself, about factors like location, features you value, and stylistic preferences is a big part of investing in a home. You need to know what you want and feel comfortable with your choices and trajectory for the investment to be worth it. Only then can you get a feel for how much money you’ll need to save and how long it will take.

Set Real Estate Savings Goals

Everyone’s budget is different, and your budget for a home will likely determine how much you need to save and how long you need to save for. Most conventional mortgages require a 20% down payment to get the loan. While this might be a lot of money, it also gives you a great headstart on paying off the loan without additional mortgage insurance.

Take stock of your annual earnings and create saving goals based on your take-home pay. You can decide to put a percentage of your monthly income into a savings account to grow it over time or be more aggressive by chopping luxuries like fitness center memberships and dining expenses to speed up your timeline.

Creating a saving deadline that’s realistic and achievable can help any financial sacrifices feel less drastic. Your real estate purchase will be worth it, especially in New York’s growing market. Remember your long-term property goals and use those to motivate yourself to save for them each month.

The Loan Conversation

While saving up for a down payment and putting money away is all well and good, there comes a time when you need to collect your loan paperwork, meet with a lender, and get preapproved for your loan.

Everything from your W-2 to your taxes from the previous three years will be relevant, as well as things like account statements and credit card statements. Be prepared to talk business by brushing up on the most common home loan concepts, and have an understanding of what kind of loan you want.

When you do that, your loan officers will be able to help you clarify your needs and get your application moving. Some research can help you stick to your timeline and achieve clarity quickly.

Finding a Timeline That Works for You

Buying a property in New York can be intimidating, but it can also be a beautiful and exciting step forward in your life. Whether you already know the ropes or you’re just getting started on your savings goals, you can find a place that’s right for you in your own time — because finding something that fits is what home is all about.

About the Author:

Evelyn Long is a real estate writer and editor. She manages Renovated, a web magazine for renters, buyers and professionals. She’s also contributed to Rental Housing Journal, National Association of REALTORS®, and other online publication.

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