If you are a Long Island first time home buyer, you might be wondering what are the steps to secure a home loan. Learn more in this article.
Long Island is a beautiful continental island in southeastern New York State, with a dynamic real estate market where demand for homes is high thanks to its proximity to New York City, highly rated schools, and desirable suburban lifestyle.
However, the shortage of available homes spikes the demand even further up – which often leads to competitive bidding situations, making it stressful for Long Island first time home buyers to keep up with the fast-moving market and rising home prices.
With a median sales price of $675K, it is no surprise that Long Island can be a tough market to compete in if you don’t have the right know-how.
Image source: redfin.com
For this reason, in this article, we will give you some of our top tips on how to secure a home loan if you are a Long Island first time home buyer. So, let’s get right into it:
What Are The Unique Characteristics of The Long Island Real Estate Market?
Before we jump into the tips, let’s take a quick look at the unique characteristics of the Long Island real estate market:
- High Demand – As we mentioned earlier, Long Island is a highly desirable area thanks to its proximity to NYC, attractive suburban lifestyle, prestigious high schools, as well as its coastal appeal.
- Low Inventory – However, inventory is typically limited, especially in areas such as Nassau County and parts of Suffolk Country. This means that Long Island first time home buyers often have to act quickly to secure a home.
- Diverse Property Types – You can find a wide range of housing types in this area, from more affordable starter homes to luxury waterfront properties, which allows you to find the property that fits your needs the best.
- High Property Taxes – Long Island is known for its high property taxes, which can impact affordability. So, it’s very important that you factor this into your budget, especially if you are comparing homes in different neighborhoods.
- Price Trends – As a Long Island first time home buyer, you will also have to keep up with the increasing prices, which has been a strong trend in the past few years.
- Close to NYC – Because the area is relatively close to New York City, it is a popular option for commuters, especially with the Long Island Rail Road (LIRR) as a key selling point. However, this adds to the increasing demand.
All of these characteristics are key in understanding the market as a Long Island first time home buyer, so you can learn how to navigate it to your advantage. And now, let’s get to some of our top tips:
Long Island First Time Home Buyers: 5 Tips For Securing a Home Loan
1. Get a Mortgage Pre-Approval To Prepare For Bidding
Considering the competitiveness of the Long Island market, which can often lead to bidding wars, we highly recommend getting a mortgage pre-approval before you begin your home research.
A pre-approval not only gives you a clear understanding of your budget but also signals to sellers that you’re a serious and qualified buyer. This can strengthen your position in a competitive bidding situation, making your offer more appealing compared to others who may not have secured financing yet.
To get a mortgage pre-approval as a Long Island first time home buyer:
- Ensure that you have a good credit score, ideally +680
- Check your credit report for any errors or inaccuracies
- Collect your financial documents, such as bank statements and proof of income
- Find an experienced and reputable Long Island lender, such as Jet Direct Mortgage
- Submit a pre-approval application, providing your financial information
- Receive your pre-approval letter
Once you’ve gotten your letter, it’s time to begin house hunting! This step will give you the confidence to look for your dream home knowing your budget and that you are a qualified buyer.
2. Understand The Variety of Mortgage Types
As a Long Island first time home buyer, a part of the homebuying journey is to understand the different mortgage types that you have at your disposal. Some of the most common options include:
- Conventional Home Loans – You can get a conventional home loan, which is a mortgage that is not backed up by a government entity. You will have flexibility when it comes to loan amounts, and you will have to show a credit score of +680.
- FHA Home Loans – Another option you have as a Long Island first time home buyer are FHA home loans, which are insured by the Federal Housing Administration. You can get approved with a moderate credit score between 500 and 580.
- Jumbo Loans – Considering the high median prices in Long Island, you might have to take a jumbo loan. Jumbo loans exceed the conforming loan limits set by government-sponsored enterprises, and require a credit score of +700.
- VA Loans – If you are a qualified veteran or active duty in any branch of the military (or a qualifying spouse), you might be eligible for a VA loan, which is backed up by the Department of Veteran Affairs. A credit score of at least 620 is recommended.
3. Prepare Your Credit Score For Your Preferred Loan Type
We highly recommend ensuring that your credit score is close to the credit score required by lenders for your loan of choice. It’s important to carefully choose the type of mortgage that suits your needs best as a Long Island first time home buyer.
If you are having troubles figuring out which loan works for you, Jet Direct Mortgage is here to help. We will provide personalized guidance from start to finish to guarantee a hassle-free home buying journey.
If your credit score is not close to the above-mentioned ones, make sure you work your way up before applying. You can increase your score by:
- Paying bills on time
- Reducing credit card balances
- Avoiding new credit inquiries
- Disputing credit report errors: Regularly check your credit report for any inaccuracies and dispute them if necessary.
- Maintaining older credit accounts
- Consolidating debt
By preparing properly before you begin the application process, you will have better chances of getting approved for a Long Island loan, and get more favorable terms and rates.
4. Factor in Property Taxes, Cost of Living, and Closing Costs
If you are a Long Island first time home buyer, another key tip we have for you is to factor in property taxes and cost of living when preparing for the application process.
Long Island has some of the highest property taxes in the nation, which is why you need to consider that into your budget to avoid unpleasant surprises.
Depending on the county and specific town, property taxes can vary widely, so it’s essential to research the tax rates in different areas, as this could significantly affect your monthly mortgage payments. You can use a tax calculator to get a more precise idea.
Image source: smartasset.com
Additionally, factor in the cost of living, which includes utilities, groceries, transportation, and maintenance expenses. Long Island’s cost of living is higher than the national average, so creating a detailed budget will help you understand what you can afford and avoid being stretched too thin.
Understanding these costs upfront ensures you’ll be financially prepared for the true costs of homeownership.
Last but not least, make sure to budget for closing costs. As a Long Island first time home buyer, you can typically expect to pay anywhere from 2% to 5% of the home’s purchase price, so make sure to take this into account.
5. Be Ready For a Competitive Market
Probably the biggest tip we can give you if you are a Long Island first time home buyer is to get ready for a competitive market. Patience is a virtue; be patient, calculating, and flexible with your expectations.
In addition, be prepared to move quickly once you find your dream home. Properties in this area often receive multiple offers, and waiting too long could mean losing out. Have your finances in order, and don’t forget to get a pre-approval letter so you can act fast.
Flexibility is also key in this market – whether it’s adjusting your expectations on location, property size, or home features. Be ready to compromise on certain aspects to secure a home that fits most of your needs.
About Jet Direct Mortgage
If you are looking for the best loans as a Long Island first time home buyer, Jet Direct Mortgage can help you find the perfect loan fit for your needs and goals.
Our mission is to set a high standard in the mortgage industry through unmatched customer service, from the application process to the post-closing stage.
Our team of experienced professionals will guide you through the home loan process step by step, so you feel confident in your knowledge and make a well-informed decision on the best mortgage for you.
Are you ready to get started? Apply now for your jumbo loan!
FAQ
What are the best neighborhoods in Long Island for first-time buyers?
Some of the best neighborhoods in Long Island for first-time home buyers include Levittown, known for its affordable housing and proximity to New York City, making it ideal for commuters.
Lindenhurst offers a mix of affordability and a suburban feel, while Huntington Station provides access to excellent schools and public transport. Patchogue is a growing area with waterfront properties and a vibrant downtown scene, appealing to younger buyers.
Should I get a fixed-rate or adjustable-rate mortgage for my Long Island home?
Deciding between a fixed-rate or an adjustable-rate mortgage (ARM) as a Long Island first time home buyer depends on your financial goals. A fixed-rate mortgage offers stable monthly payments over the loan term, making it ideal if you plan to stay in the home long-term and want predictability.
However, ARMs carry the risk of higher payments if rates increase later. Consider your long-term plans and risk tolerance when choosing between the two.
How long does it take to close on a home in Long Island?
The typical time to close on a home in Long Island is around 30 to 60 days, depending on factors like the loan type, property inspection, and the lender’s efficiency.
A cash offer can speed up the process, while delays may occur if issues arise during the inspection or appraisal stages. Working with a reliable lender and ensuring all paperwork is in order can help streamline the process
How can I prepare financially for the cost of living in Long Island?
To prepare financially for the cost of living in Long Island, start by creating a detailed budget that includes housing costs, such as mortgage payments, property taxes, and utilities, which are typically higher than the national average.
Consider the costs of transportation, especially if you commute to New York City, and factor in food, healthcare, and insurance. Saving for home maintenance and unexpected expenses is also essential. Researching the property tax rates for different Long Island areas and setting aside an emergency fund can help ensure long-term financial stability

Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.