Whether this is your first time buying a home or you are just looking to move, buying a home in New York comes with a unique set of challenges. The market can be tough if you are not familiar with it, and understanding how it works can help make things easier.

Don’t Neglect Your Other Savings

You might be tempted to throw as much money into your home fund right now so you can get into your home that much sooner. But you likely have other savings goals as well. You shouldn’t stop contributing to your retirement account, especially if you work for an employer who offers a match on what you put in. If you have kids, you may want to help them get to college, which might mean setting a portion of each paycheck aside into a college savings plan. On the other hand, there are other ways to help your college-bound student, including helping them get a student loan to pay for their education. It might be hard to turn down a request to sign with them as this will add to your debt profile, but if you are trying to buy a home by getting a mortgage, you might find it harder to get the mortgage after you cosign. There are pros and cons to each side, and you can look at a guide with more information on what you should know.

Start Saving as Soon as Possible

New York real estate is some of the most expensive in the country, whether you are buying a house or a condo. You will generally need to put at least 20 percent or more down. Many who have never previously bought in New York believe it is possible to put less down, but this is not very common anymore, especially in New York City. Save for your new home by budgeting your money carefully. It is easy to budget for regular expenses, like rent and grocery bills. However, you might face unexpected expenses throughout the year as well. You may purchase gifts for birthdays or holidays, and these can add up at certain times of the year, and insurance premiums are often paid a few times a year instead of once a month. If you are going to school, you will likely need to make tuition payments, which can cost quite a bit. Planning for these things ahead of time can help you stabilize things. Estimate how much you will spend in these areas and divide this by the amount of time you have until it is due.

You Will Need to Save for More Than Just the Down Payment

When you are buying a home, it is easy to think only about the down payment you will owe, but there are plenty of other costs to think about as well. In New York especially, you will face several closing costs. If you are buying a condo, you might owe 2 to 4 percent of the total cost, and new construction could cost you even more. There are closing costs calculators that will help you figure out how much you will owe. Don’t forget about the cost of moving either. If you have large items, such as furniture and heavy boxes, you may or may not have enough friends to help you out. You might need to rent a truck or hire movers to help you, especially if you are coming from out of the area.

Get Ready for Competition

Many want to live in New York, especially the city, and it can be hard to purchase a home. If you see something in your budget with the features you are looking for, it may not last that long. Acting quickly is important but know that you still might lose out to other buyers. Try not to get too attached to any particular home until you know you will be able to purchase it.

Work With a Buyer’s Broker

A home is one of the biggest investments you will make, so it is important to get advice from a broker who can advocate for you. They can help explain all the documentation you will need, find the best mortgage rates, and they will help you find a home that meets your needs. They can also help guide you as you enter negotiations, and they can prepare any required board packages. A buyer’s broker will advocate for you, but a listing broker typically represents the seller and has their interests in mind.