Real Closed File Review - Long Island, New York
- Alisha
- 22 hours ago
- 7 min read
Another first-time homebuyer has officially closed in Elmont, Nassau County, Long Island!
For buyers wondering what purchasing a home on Long Island can actually look like, this real closed-file example provides a useful look behind the numbers.
This buyer was a business owner purchasing with one borrower and a 698 credit score. The home was purchased for $795,000 with 25% down, using a Conventional mortgage.
Let's break down the financing, monthly housing expenses, closing costs, and some of the lessons first-time buyers can take away from this transaction.
🏡 The Property & Purchase
Location: Elmont, Nassau County, Long Island, New York
Purchase Price: $795,000
The buyer made a 25% down payment, equal to:
Down Payment: $198,750
That resulted in a mortgage of:
Loan Amount: $596,250
Putting 25% down significantly reduced the amount that needed to be financed.
However, buyers should remember that a down payment is only one part of the cash needed to purchase a home.
Closing costs, prepaid expenses, reserves, property taxes, homeowners insurance, and other transaction expenses may also need to be considered.
👤 Meet the First-Time Homebuyer
This transaction involved:
1 Borrower
698 Credit Score
$13,500 Monthly Household Income
Business Owner
$600 Monthly Car Payment
No other monthly debt highlighted in the closed-file review
One of the most important details in this transaction is the borrower's credit score.
The buyer successfully closed with a 698 credit score.
For buyers who believe homeownership requires perfect credit, this real transaction provides an important example: mortgage qualification involves much more than one number.
Lenders may evaluate factors including:
Credit history
Income
Employment or self-employment
Assets
Down payment
Monthly liabilities
Debt-to-income ratio
Property characteristics
Loan program
Overall borrower profile
Every application is different and remains subject to underwriting guidelines and approval.
💼 Buying a Home as a Business Owner
This buyer was also a business owner.
Self-employed borrowers can qualify for traditional mortgage programs, but income documentation can be different from what is required for a salaried employee.
Depending on the loan program and borrower profile, underwriting may review documentation related to the business and the income available to the borrower.
This is why business owners considering purchasing a home should review their finances with a mortgage professional early in the process.
Understanding how qualifying income may be calculated before shopping for a property can help establish a realistic home-buying budget.
📄 The Mortgage
The buyer used a Conventional mortgage.
Loan Type
Conventional
Loan Amount
$596,250
Interest Rate
6.875%
APR
6.925%
Monthly Principal & Interest
$3,916.94
The difference between the interest rate and APR is worth understanding.
The interest rate is used to calculate the interest charged on the mortgage balance.
The Annual Percentage Rate (APR) is a broader measure of borrowing cost that incorporates the interest rate and certain applicable finance charges.
That is why buyers comparing mortgage offers should look at more than the interest rate alone.
💵 What Does It Cost to Live Here?
The monthly principal-and-interest payment is only one component of the cost of owning this property.
For this transaction:
Principal & Interest
$3,916.94 per month
Property Taxes
$12,484 per year
That works out to approximately:
$1,040.33 per month
Homeowners Insurance
$1,314 per year
That works out to approximately:
$109.50 per month
Using those figures, the approximate combined monthly housing expense would be:
Approximately $5,066.77 Per Month
This simplified estimate combines:
Principal & interest: $3,916.94
Property taxes: $1,040.33
Homeowners insurance: $109.50
Actual monthly housing expenses can differ depending on escrow arrangements, insurance changes, tax adjustments, association charges where applicable, and other property-related expenses.
This is why buyers should focus on their total estimated housing payment, not simply the mortgage principal and interest.
🚗 How Monthly Debt Can Affect Mortgage Qualification
The buyer's only monthly debt highlighted in this file was a:
$600 Car Payment
Monthly liabilities matter because lenders generally evaluate the relationship between qualifying income and recurring debt obligations when reviewing a mortgage application.
For prospective buyers, payments associated with:
Auto loans
Student loans
Credit cards
Personal loans
Other mortgages
Certain other recurring obligations
can potentially affect borrowing capacity.
Reducing monthly debt before purchasing may improve a borrower's financial profile in some situations, although paying off debt is not automatically the best strategy for every buyer.
💰 What Were the Major Closing Costs?
The closed-file review highlights three significant categories of closing expenses.
Lender Fees — $1,550
These were the lender-related fees highlighted in the transaction.
Title Search Fees & Title Insurance — $7,501
The file identifies this amount as covering title search fees and title insurance for the lender and owner.
Title work is an important part of a real estate transaction because it helps determine ownership and identify potential issues affecting the property's title.
Government Recording Fees — $6,360
Government recording charges were another significant expense associated with this transaction.
Total of These Three Highlighted Categories: $15,411
Importantly, $15,411 should not be interpreted as the buyer's complete closing-cost total.
These are only the primary costs highlighted in the closed-file review.
📋 What Other Closing Costs Could a Buyer Encounter?
Additional expenses may include:
Credit report fees
Appraisal
Homeowners insurance
Prepaid interest
Property taxes
Escrow reserves
Other lender charges
Other third-party charges
Depending on the transaction, additional expenses may apply.
The exact amount required at closing depends on the property, loan structure, closing date, lender requirements, taxes, insurance, title charges, and other transaction-specific factors.
💡 Down Payment vs. Closing Costs: Know the Difference
This is an important distinction for first-time buyers.
The buyer made a $198,750 down payment, but that does not mean $198,750 represented all of the cash required to close.
The down payment reduces the amount being financed.
Closing costs are separate expenses associated with obtaining the mortgage and completing the real estate transaction.
There can also be prepaid expenses and reserves.
When planning to purchase a home, buyers should therefore ask:
"How much cash will I need to close?"
rather than looking only at the down payment requirement.
🔑 The Biggest Takeaway for First-Time Homebuyers
One of the clearest lessons from this real closed file is:
You don't necessarily need perfect credit to become a homeowner.
This buyer successfully closed with a 698 credit score while operating a business.
But that doesn't mean every borrower with a 698 score will qualify for the same loan, interest rate, purchase price, or terms.
Mortgage approval considers the complete borrower profile.
For this buyer, that profile included:
$13,500 in monthly household income
25% down
A $596,250 loan amount
A $600 monthly car payment
Business-owner income
A 698 credit score
Conventional financing
The interaction between these factors matters more than looking at any single number by itself.
🏦 What First-Time Buyers Can Learn From This Elmont Closing
If you're preparing to buy your first home, this transaction highlights several important steps.
1. Know Your Credit
Review your credit before beginning your home search. Understanding your profile gives you time to address potential issues.
2. Understand How Your Income Will Be Calculated
This is particularly important if you're self-employed or own a business.
3. Look at Monthly Debt
Your existing monthly obligations can affect your mortgage qualification and comfortable housing budget.
4. Plan Beyond the Down Payment
Closing costs and prepaid expenses can add substantially to the cash required for a purchase.
5. Understand the Complete Monthly Payment
Principal and interest are only part of the cost. Property taxes and homeowners insurance also matter.
6. Get Pre-Approved Before Shopping
A pre-approval can help establish your price range and financing options before you begin making offers.
📍 Buying a Home in Elmont, Nassau County
Elmont provides buyers with a Long Island location in Nassau County while maintaining convenient access to Queens and New York City.
Like many Nassau County communities, individual home prices and property taxes can vary substantially.
Buyers should evaluate each property individually and consider:
Purchase price
Property taxes
Insurance
Property condition
Potential repairs
Financing
Closing costs
Monthly payment
Long-term affordability
The right property isn't simply one you can qualify to purchase—it should also fit your broader financial goals.
Frequently Asked Questions
Can I buy a home with a 698 credit score?
Potentially. This real closed-file example involved a buyer with a 698 credit score who successfully obtained Conventional financing. However, approval and loan terms depend on the borrower's complete financial profile and applicable underwriting guidelines.
Can a business owner qualify for a Conventional mortgage?
Yes, eligible self-employed borrowers and business owners may qualify for Conventional financing. Income documentation and calculation requirements can differ from those used for salaried borrowers.
How much were the closing costs?
The three primary closing-cost categories highlighted in this file totaled $15,411: $1,550 in lender fees, $7,501 in title search and title insurance charges, and $6,360 in government recording fees.
This is not the complete amount of all closing costs. Additional charges and prepaid expenses may apply.
Is the down payment included in closing costs?
The down payment and closing costs are generally separate components of the cash needed to complete a purchase. Buyers should obtain an estimate of their complete cash-to-close requirement when planning their purchase.
What should I do before buying my first home?
Start by reviewing your income, credit, monthly debts, available savings, down payment, estimated closing costs, and comfortable monthly housing budget. A mortgage pre-approval can then help you understand the financing options available based on your individual profile.
Let’s Build a Custom Plan for You
Whether you’re buying, refinancing, or investing, understanding your financing options is the first step toward making a smart real estate decision.
👉 Get Pre-Approved Today
👉 Explore Our Loan Programs
👉 Use Our Affordability Calculator
📊 Connect With Us! 📊
LJ Realty Team
Your Local Guide to Homeownership!
📍127-03 Rockaway Blvd South Ozone Park, NY 11420
☎️ (516) 218-1297
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