Lee Presser
(347) 829-9996
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The Buying Process Time Table for Manhattan Coops Requiring a Mortgage
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| Activity |
Estimated Time
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Average Time |
Speak with a mortgage broker, bank, or financial advisor
It is important to have an idea of how much you can spend on your Manhattan apartment prior to beginning your search. Keep in mind that financial requirements vary from building to building and bank to bank. It is strongly recommended that you get pre-approval for financing by a mortgage broker. As you begin your search you can also start to provide your mortgage broker with required documentation so you are ready to move quickly once you find a property to purchase. |
1 - 3 Weeks |
2 Weeks |
Hire a Manhattan Real Estate Lawyer
Every one has a relative or friend that is a lawyer, and that is fine. However, be sure his specialty is in real estate and in the Manhattan area as Manhattan is like nowhere else in the world! |
1 - 3 Weeks |
1 Week |
Selecting the Manhattan Apartment
Depending on what Manhattan area apartment you are looking for, it might take one day or three months to find your dream home. The average person sees 20 to 25 apartments before deciding on the perfect one. Once you have made your decision, your Manhattan real estate agent will get the building´s financial statement so you and your lawyer can determine if the building is financially solid. |
1 Day - 3 Months
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60 Days
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Negotiation with the seller(s)
Ask your Manhattan real estate agent to inquire about assessments, fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washer/dryers, etc. Most homes are sold "as is" unless otherwise noted, appliances are usually included, where fixtures, window treatments, etc., are usually not, but it doesn't hurt to ask. there may be a give and take factor, try to be open to all. |
3 Days - 2 Weeks
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3 Days
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Preparation and Signing the Contract
Generally, in a sales transaction, both the buyer and the seller are represented by a Manhattan real estate attorney. The seller´s attorney draws up the contract for the buyer´s attorney and upon receipt, the buyer´s attorney performs "due diligence"- reading minutes, reviewing financial statements of the building, etc. Once all terms are agreed to, the buyer signs the contract and returns it to the seller´s attorney along with typically a 10% deposit/down payment. Down payment is usually decided by the specific coop or condo, which is usually more strict than the bank. Once the deposit is received, the seller executes the contract. Possible contingencies may include financing, Board approval, and closing dates. A contract is binding only after both parties have signed it and value has been rendered (e.g. escrow monies). |
3 - 10 Days
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3 Days
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Applying for a mortgage and receiving the Commitment Letter from your lender
Mortgage applications cannot be processed without a fully executed contract between you and the seller. If an apartment is being financed, the Board requires a commitment letter from the lender. These letters are generally the last items you need to complete a coop/condo application. Your Manhattan real estate agent will work with you on this process. |
4 Weeks - 8 Weeks
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42 Days
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Preparing and Submitting Board Package or Condo App*
Almost all apartment buildings require Board approval before a closing date can take place. In order to review a potential purchaser, the Board of Directors/Managers review extensive information from the buyer in a Board Package. Most Boards typically request the following information:
1. Full financial disclosure (net worth) with supporting documentation
2. Employment history
3. Current salary
4. Personal and business references
5. Tax returns for the previous 2 years.
6. Credit history
If a purchaser cannot, or does not want to supply this information, he/she should consider purchasing in certain condos where the requested information may not be as extensive.Your Manhattan broker will obtain a purchase application and a list of required documentation for potential purchasers to fill out after a contract has been executed. If there is no financing, it usually takes about 2-4 weeks to gather the information for the purchase application and requested documentation.
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10 - 20 business days or within 3 days of receiving your commitment
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5 Days
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Submit Board Package for the Building's Managing Agent´s Review
After the your Manhattan real estate agent completes the Board Package with you, he/she will forward the package to the building´s managing agent. The managing agent will review the package to ensure it is complete. The package will then be forwarded to the Board members. After a co-op Board reviews the package, they will decide if they would like to meet the potential purchaser; in the case of a condo, to exercise its first right of refusal or to approve the purchaser. |
2 - 4 Weeks |
15 Days |
Meet with the Co-op Board for an Interview
Typically Co-op Boards will meet once a month, but not always, especially in the summer months. Generally a Board meeting will be held in the evening on a week night. Although a Board interview may be granted, this does not guarantee Board approval. In a few co-ops, if you own a dog, the Board will ask you to bring along your pet. It is critical that purchasers make themselves available to be interviewed by the Board. See our Manhattan Coop Board Interview Tips! It can feel like a job interview. |
30 Minutes - 1 hour
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30 Minutes
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The Board's Decision
After the Board interview the managing agent will generally alert the seller´s broker whether you have been approved by the Board. Almost time to celebrate! |
1 Day - 1 Week
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2 Days
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Schedule the Closing of Your Manhattan Apartment
After the Board approves your Manhattan Apartment the managing agents generally set the closing date, and buyer´s and seller´s lawyers will coordinate with the appropriate banks, title company, brokers, etc., for available dates and times. Typical time frame from the time an apartment has an accepted offer to the time an apartment closes is 2 months for most condos and 3 months for most co-ops. |
1 Week - 3 Weeks
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10 Days
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| Total |
60 Days - 182 Days
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153 Days**
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*For condos: There is no board interview, however a board package must be submitted to the Board of Governors in order for them to exercise their first right of refusal. This usually takes approximately 15 - 30 Days. The only way a buyer with the means to purchase a condominium can be declined is if the condominium association purchases the unit from the seller at the price the buyer was willing to pay, an event that rarely happens.
* If there is no mortgage involved you can estimate a savings of 4 - 8 weeks. |
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