A family preparing to move to Hartsdale, located in Westchester County east of the Hudson River, recently had to revise their plans after receiving a lower-than-expected approval limit during the pre-approval stage. They were unaware of what lenders prioritize before considering how much they had prepared for a down payment.

According to Zillow data, as of June 30, 2026, the average home value in Hartsdale is $677,751, which is a 1.2% increase from a year ago (Zillow). When looking at Westchester County as a whole, the median price rises to around $750,000, indicating significant variation between neighborhoods within the county.

Westchester is known for having high property taxes in New York State. The average effective tax rate in New York is about 1.6% (propertytaxrates.org), but Westchester often has higher rates set by town and school district, so it's essential to factor property taxes into your down payment planning. Be sure to check the tax bill for the specific address before signing a contract.

Based on the $677,751 figure, if you have a credit score of 580 or higher, you can start with a 3.5% down payment of $23,721 using an FHA loan (fha.com). Conventional loans may allow for as low as 3% for first-time homebuyers or those with an income at or below 80% of the area median, but typically, people prepare around 5%, which is $33,888. However, if you can't reach the 20% down payment of $135,550, you should be aware that PMI will be added monthly. Putting down 10%, or $67,775, can help you find a balance between monthly payments and PMI costs.

New York State offers down payment assistance to first-time homebuyers through the State of New York Mortgage Agency (SONYMA). The Achieving the Dream program allows for a 3% down payment (with 1% being your own funds) to secure a lower interest rate, and DPAL Plus provides up to $30,000 for down payment and closing costs (hcr.ny.gov). While this assistance reduces initial cash burdens, you must meet income criteria, so it's beneficial to prepare income documents early in the pre-approval process.

Improving your approval odds ultimately comes down to three factors that lenders consider: credit score, DTI, and income verification. For credit score ranges, rates are 6.59% for scores above 780, 6.66% for the 760s, 6.75% for the 740s, and 6.91% for the 700s (themortgagereports.com). Even a 10 or 20-point increase in your score can significantly change your monthly payment.

In simple terms, DTI is the ratio of your monthly income that goes toward debt repayment. According to the Consumer Financial Protection Bureau, an ideal back-end DTI is below 43%, and a front-end DTI, which only considers housing costs, should be below 28%. If you have significant credit card debt or auto loans, it's advisable to pay those down before closing to improve your approval chances.

Avoid opening new credit cards or changing jobs right before closing, and keeping 3 to 6 months' worth of living expenses in your account is also something lenders look favorably upon.

One reason Korean families are interested in Hartsdale is the reputation of nearby school districts. The school districts in areas adjacent to Scarsdale tend to receive high ratings on GreatSchools, but school district boundaries change frequently, so be sure to verify the assigned school for the specific address before purchasing. If you're moving from another state, it's also wise to budget for potentially higher property taxes and homeowners insurance compared to your previous state.

Pre-approval and pre-qualification are not the same. Pre-qualification is an estimate based solely on self-reported income, while pre-approval is the result of a lender reviewing actual income documents and credit history. Before you start viewing properties, obtaining pre-approval will enhance your negotiating power when making an offer. Even if you're paying PMI with a down payment below 20%, you can apply to cancel PMI once your loan balance falls below 80% of the home's value as you pay down the principal.

This article is not investment or legal advice, and it is recommended to consult with a loan officer and professionals before entering into any contracts.