The Buyer's Financial Checklist
Buying property in Manhattan requires careful financial preparation. Use this checklist to ensure you have all the necessary documents and funds in place before you begin your search — and well before you're ready to make an offer.
Work through each section with your mortgage broker, attorney, and real estate agent. The more organized you are going in, the smoother the process will be.
01
Financial Documentation
- Two years of tax returns (personal and business, if applicable)
- Two years of W-2s or 1099s
- Recent pay stubs (last two months)
- Bank statements (last two months)
- Investment account statements (stocks, bonds, mutual funds, etc.)
- Retirement account statements (401(k), IRA, etc.)
- Proof of funds for down payment and reserves
- Gift letter (if receiving financial assistance from family)
- Evidence of liquid assets (cash, money market accounts, etc.)
- Letter of employment verification (including position, salary, and length of employment)
02
Credit & Debt Information
- Credit score report (available through your mortgage broker)
- List of outstanding loans (student loans, car loans, personal loans, etc.)
- Credit card statements
- Debt-to-income ratio calculation — DTI should ideally be below 25%
03
Down Payment & Closing Costs
Minimum 25% down payment is typically required for Manhattan co-ops and condos. Some buildings require more — confirm the requirement for any property you're seriously considering.
-
Budget for closing costs — estimate 2–5% of the purchase price, including:
- Mortgage recording tax (condos)
- Title insurance (condos)
- Attorney fees
- Mansion tax (applies to properties over $1 million)
- Flip tax (if applicable)
- Co-op / condo board fees
- Appraisal and inspection fees
04
Pre-Approval & Loan Documentation
- Mortgage pre-approval letter from a lender
- Loan estimate document
- Commitment letter (once approved for a mortgage)
- Mortgage broker or lender contact information
05
Additional Considerations
- Homeowners insurance policy quote
- Post-closing liquidity — co-ops typically require a minimum of 2 years of mortgage and maintenance fees held in reserve
- Moving costs and renovation budget, if applicable
- Understanding of available tax deductions and potential benefits
06
Final Steps
- Review all financial documents with your real estate agent, attorney, and lender
- Ensure funds are easily accessible for the down payment and closing costs
- Double-check all requirements specific to your chosen property type — co-op and condo boards have distinct requirements
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