New York real estate attorney Natalia Sishodia (https://sishodia.com/first-time-buyers-in-new-york/), of Sishodia PLLC, provides valuable insights into the challenges first-time homebuyers face in New York City’s competitive real estate market. With high property costs, complex closing procedures, and financing obstacles, purchasing a home in the city requires careful planning and informed decision-making. Sishodia highlights common pitfalls that buyers encounter and offers practical advice to help them manage the process smoothly.

First-time homebuyers often underestimate the complexities involved in closing a deal. According to the New York real estate attorney, unexpected fees can add tens of thousands of dollars to the final purchase price. Many buyers are surprised to learn that their mortgage amount does not equate to the actual sum available at closing. Expenses such as lender’s counsel fees, appraisal fees, and escrow costs are deducted from the loan amount, reducing the net disbursement. Additionally, buyers of new developments, known as sponsor purchases, may be responsible for covering city and state transfer taxes, the sponsor’s legal fees, and contributions to the building’s working capital fund.

Another common misconception among first-time buyers is the closing date itself. New York real estate attorney Natalia Sishodia explains that most real estate contracts in the city feature an “on or about” closing date, which serves as a target rather than a firm deadline. Buyers unfamiliar with this flexibility may assume their closing will happen on a fixed date, only to find it delayed due to lender approvals or other unforeseen circumstances. In contrast, when purchasing from a developer, the closing date is often strict, and failure to close on time could result in penalties.

Timing and coordination challenges further complicate New York real estate closings. A successful transaction requires multiple parties—including the buyer, seller, attorneys, lenders, and title companies—to be available simultaneously. According to Natalia Sishodia, one of the biggest challenges is that final closing figures are often not available until the closing date itself. Ideally, buyers should receive these figures in advance, but in practice, delays can occur, requiring careful planning and flexibility.

Beyond the closing process, first-time buyers must also consider additional factors such as home inspections and financing. Natalia Sishodia advises that conducting a home inspection before signing a binding purchase agreement is crucial. Without it, buyers may have little recourse if they later discover structural defects, environmental hazards, or other costly issues. Financing also presents challenges, as lender preapproval does not guarantee final loan approval. Buyers must ensure that both the building and the property appraise at or above the purchase price for the lender to provide the necessary funding.

“Purchasing a home in New York is a significant financial commitment, and first-time buyers often face unexpected hurdles along the way. From understanding closing costs to securing financing, it’s crucial to be well-informed and prepared,” says Natalia Sishodia.

Real estate disputes are another concern for new homeowners. Issues with title defects, zoning regulations, and lease agreements can arise, making it essential to consult a New York real estate attorney when legal conflicts occur. For example, tenants have an implied right of habitability, meaning landlords must maintain livable conditions. However, if disputes arise regarding property maintenance, legal intervention may be necessary to resolve the matter.

In addition to legal considerations, first-time buyers must also handle the complex aspects of securing homeowner’s insurance. Mortgage approval does not guarantee access to preferred insurance rates, as insurers assess risk based on various factors, including credit history. Natalia Sishodia recommends that buyers apply to multiple insurance companies to compare coverage options and rates.

Understanding homeownership timelines is another critical factor. Many first-time buyers wonder how soon they can sell a property after purchasing it. While there is no legal restriction, selling too soon may result in financial losses, especially if market conditions have not improved. Additionally, buyers working with real estate agents should review their contracts carefully, as early termination of a listing agreement could incur fees.

Down payment requirements are also a major consideration. Natalia Sishodia explains that most first-time buyers in New York need to put down between 3% and 3.5% of the purchase price, depending on the type of loan they secure. Conventional loans typically require a minimum 3% down payment, while Federal Housing Administration (FHA) loans require at least 3.5%. Some buyers may qualify for programs such as USDA or VA loans, which allow for zero down payment.

To help first-time buyers manage these financial hurdles, New York offers various grants and loan programs. The HomeFirst Down Payment Assistance Program provides up to $100,000 in forgivable loans for down payments and closing costs, provided buyers meet income eligibility requirements and agree to live in the home for a set period. The State of New York Mortgage Agency (SONYMA) also offers low-interest mortgage programs with down payment assistance options.

Navigating New York’s competitive real estate market requires thorough preparation and professional guidance. Working with an attorney such as Natalia Sishodia can help first-time buyers avoid costly mistakes, understand legal requirements, and secure a smooth transaction. For those considering homeownership in New York, seeking legal advice early in the process can make all the difference in achieving a successful purchase.

About Sishodia PLLC:

Sishodia PLLC is a New York-based law firm dedicated to assisting clients with real estate transactions, estate planning, and related legal matters. Led by Natalia Sishodia, the firm provides personalized legal guidance to buyers, sellers, and investors navigating the New York real estate market. Through careful attention to detail and a client-focused approach, Sishodia PLLC helps individuals make informed decisions about their property investments.

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Company Name: Sishodia PLLC
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Website: https://sishodia.com/