NYC Living guides our clients through the entire purchase process. We work to reduce the complexity and make it as smooth as possible. Here's how it works:
Seek pre-approval for a mortgage: The most important consideration is how much you wish to put down. Condominium apartments require at least 10% down while Cooperatives require at least 25% down. Your mortgage broker can help you determine what is the best scenario for you.
Time necessary: 1-2 days
Find your home: The average home seeker sees 17-25 apartments before deciding on one.
Time necessary: 3-6 months
Make an offer and negotiate: Most apartments are negotiable. Make sure you inquire about any assessments, fixtures, appliances, before making an offer.
Time necessary: 3-10 days
Contract signing: In almost all New York City real estate sales transactions the seller's attorney will draw up a contract for the buyer's attorney. Once the buyer's attorney performs his/her "due diligence"- reading the buildings minutes, financial statements, etc, the buyer will sign the contacts and forward a 10% deposit and contracts to the seller's attorney for countersigning. The contract is binding only after both parties have signed.
Time necessary: 1-3 weeks
Apply for a mortgage: Mortgage applications cannot be processed without an executed signed contract. If you are financing, the board requires that you include a commitment letter from the lender as part of your board package/condo application. This letter is typically the last item needed to complete the package.
Time necessary: 6-9 weeks
Complete the board Package or Condominium Application: Unlike Condominium apartments, Cooperative apartment buildings require board approval before a closing can take place. The Board of Directors for the Coop demand full financial disclosure. Most Boards request a detailed financial statement of net worth with supporting documentation, employment verification, credit history, reference letters and tax returns, among other items. If this is something a purchaser does not feel comfortable with or is unwilling to disclose he/she should buy a Condominium. However, there are cases when buying a coop does not require approval from the board. This is usually when a purchaser buys from a Sponsor. Your agent can discuss this option in detail with you. When buying a Condominium apartment the potential purchaser needs to fill out a Condominium Application. Although there is additional information like a Coop package there is less scrutiny and the purchaser will not have to be interviewed by the Board.
Time necessary: 3-6 weeks
Submit the Board Package or Condominium Application: Once completed by the buyer's real estate agent, the agent will then forward the necessary copies to the managing agent for the building. The managing agent will inspect the package/application to make sure it is complete.
Time necessary: 1-4 weeks
Meet the Coop Board: The Coop board typically meets once a month. However, every Board is different. Almost always the meeting is held in the evening on a weeknight. Please keep in mind that although a interview is granted, this does not assure approval.
Time necessary: 30 minutes to 1 hour
Receive Board Approval: The managing agent will alert the seller's broker on approval.
Time necessary: 1 day - 1 week after the interview
The Closing: Once approval has been granted, the managing agent and lawyers for the buyers and sellers will coordinate a time and date for the closing.
Time necessary: 1-2 weeks after board approval
