Buying a house on Long Island, step by step

Buying a house is exciting, and it's also a lot of steps, a lot of paperwork and a lot of people. We wrote this guide so you know what's coming before it comes. Your experience will be your own, and we'll adjust to what you need, but the road looks like this.

We're Mark Vogler and Gina DeMaio, partners in real estate and in life, at Berkshire Hathaway HomeServices Laffey International Realty in Huntington. There are two of us, and you get both. Mark comes from 30 years in construction, so he sees what's behind the walls before you fall in love with the kitchen. Gina spent 22 years as a hairdresser in Southampton, which is where she learned to really listen. When we can't be in two places at once, Debra Brzozinski covers showings and inspections, so you're not left waiting on us. When you call, one of us answers, well into the evening.

There's being ready on paper and there's being ready in life. Even a starter home is a big commitment and a few roots in the ground. If you're buying with a partner, are you on the same page about money? Could a job move you in the next few years? Are you thinking about growing your family? None of these is a reason not to buy, but they're worth talking through first.

Then come the numbers your lender will look at:

• Income and work history. Lenders usually want to see about two years of steady work. If you're on a payroll, that's mostly recent pay stubs and W-2s. If you're self-employed, expect to hand over tax returns and more.
• Debt-to-income ratio. Your monthly debt payments divided by your monthly income before taxes. If your debts come to $2,000 a month and you earn $6,000 a month, your ratio is 33%. Many loans look for 43% or less, though it varies by lender and loan type.
• Credit. Your score affects which loans and which rates you can get. Paying on time and paying down balances before you apply can make a real difference. Your lender will tell you what score each loan needs.

When is the right time? That depends on your situation more than the headlines. Talk to a lender and a financial advisor before you make the call. We're happy to help you get ready.

• Conventional loans come from private lenders and aren't backed by the government. Most mortgages in the country are conventional, and some allow as little as 3% down.
• FHA loans are insured by the Federal Housing Administration, so the credit requirements are less strict. The down payment can be as low as 3.5%.
• VA loans help veterans, service members and eligible surviving spouses buy a home, often with no down payment and no private mortgage insurance.
• USDA loans allow eligible buyers to put nothing down, but only in qualifying rural areas, and very few Long Island addresses qualify.

We always introduce you to two or three lenders we trust, never just one, so you can compare.

Before you tour a single house, write down what you need and what you'd like. Split it into two columns: need and want. It keeps you focused when a beautiful kitchen tries to talk you out of a third bedroom.

• The basics: which towns, your price range (no less than, no more than), which school district if schools matter to you, older home or newer, and how much renovation you're up for: a lot, a little, or none.
• Style: ranch, colonial, cape, split level, hi-ranch, townhouse, condo or new construction.
• Inside: bedrooms and bathrooms you must have and would like to have, square footage, hardwood floors, an eat-in kitchen, a family room, a basement, a laundry room, a fireplace, a bedroom on the main floor.
• Outside: yard size, a fence, a garage and how many cars, extra parking, a patio or deck, a pool.
• Accessibility: anything you need, like a step-free entry.

Then think about the area itself: your commute, the train, shopping, parks and the property taxes. Then we sit down and go over it together. That conversation is the start of our Plan of Attack, and it's how we keep you from touring houses that were never going to work.

Before you write an offer, have three things in place: your pre-approval, a clear read on the market from the comparable sales we pull for you, and your down payment in the bank and ready to go. Earmarked isn't enough. You need direct access to the money.

A written offer usually covers the address, the price, your down payment, how you're financing, the timing, any contingencies, and your real estate attorney's name, which shows the seller you're ready to move.

Common contingencies:

• Financing: you get your mortgage.
• Inspection: in New York the inspection usually happens right after your offer is accepted and before the contract is signed, so what it finds is negotiated before you sign rather than through a contingency.
• Appraisal: if you are financing, the home has to appraise for enough to support the loan; your attorney sets out in the contract how a low appraisal is handled.
• Home sale: less common, the purchase depends on selling your current home.

Contingencies protect you, but too many can sink an offer when there's competition. We'll help you keep the ones that matter and drop the rest.

Then the seller can accept, decline or counter, and you can go back and forth as many times as it takes, until you agree or someone walks away.

Now you formally apply for the loan, with the lender who pre-approved you or a different one. Get ready to upload:

• W-2s from the past two years
• Pay stubs from the past 30 to 60 days
• Proof of any other income, including gift letters
• Tax returns from the past two years
• Recent bank statements
• Details on car loans, student loans and other debts
• Your ID and Social Security number

Then comes underwriting, where the lender digs into everything and makes the final call. They may ask for more documents, so answer fast. The lender also orders the appraisal. Your attorney has already ordered the title search.

The appraisal. The appraiser works for the lender, not for you or the seller, and confirms the home is worth what you agreed to pay. We stay in touch with your lender and the seller's agent so it gets scheduled quickly. If it comes in low, the deal isn't automatically over. We'll go through your options with you and your attorney, like renegotiating the price or covering the difference.

Homeowners insurance. Most lenders require it before they'll fund the loan. You want enough coverage to rebuild the home, which isn't always the same as the price, and it should start on your closing day.

On Long Island, closing often happens about 45 to 60 days after the contract is signed, depending mostly on your lender.

The final walk-through. Within about a day of closing, we walk the house with you to make sure it's in the condition you agreed to and any promised repairs are done. Run every faucet and look for leaks, flush the toilets, test the appliances and the washer and dryer, and open and close the garage door.

At the closing table you'll usually see you, the sellers, both agents, your attorney, the seller's attorney, the bank's attorney and the title closer. Bring a government-issued photo ID and the certified checks your attorney asks for.

Then you get your keys. Congratulations, you're officially a homeowner. Time to throw a party and meet the neighbors.

Start with a conversation, before you tour a single house. We sit down with you before you tour anything, talk through what you want and what you can spend, get your pre-approval sorted, and build a plan around it. That's how you stop losing houses to buyers who were simply more ready.

This guide describes our general process. It is not legal, tax or lending advice. Your attorney and lender will advise on your situation.

Call us at (631) 796-1443 or tell us what you're looking for. We'll get right back to you.