BUYER'S GUIDE

MORTGAGE Pre-APPROVAL 

Buyers should be pre-approved for a mortgage prior to taking the time to see properties. It is important to consider the type of property you’re interested in (Property Types) and the financial requirements that come along with each (Closing Cost Analysis). If you are unsure of where to begin the search for your mortgage start with the bank(s) you use daily then get 3-4 additional recommendations as well as taking the time to speak with a mortgage broker.

Although the process of pre-approval may seem unnecessary initially, getting this out of the way puts your best foot forward. The difference between an accepted offer and being left on the sidelines is often your ability to transition smoothly between the Search Phase and Offer Phase and pre-approval is two steps in the right direction.

SEARCH

A typical time frame for a search in New York City varies widely. When you first begin your search there will be a lot of inventory to sift through as it’s your first introduction to the market. Upon seeing what’s immediately available a Wyllie Real Estate agent will update you daily with what comes onto the open market as well as searching for off market properties to give you the full scope of the market.

NEGOTIATION (2-5 Days)

The negotiation period will have its peaks and valleys with the Buyer, Seller, and possible additional offers all jockeying for pole position. For a property garnering a lot of attention expect things to move along quickly as the broker/seller examines the offers. Often offers can be met with a swift ‘No’ and no additional dialogue- this should not be taken offensively, it is just an opportunity to re-calibrate and additional, improved offers will still be considered.

Everything is negotiable. However, the market and other offers will dictate what will realistically be accepted by the other party.

MORTGAGE APPLICATION (2-4 weeks)

Mortgage applications cannot be processed without an executed contract. Condo and cooperative buildings will require a commitment letter from a lender; this will be included in your board application (also referred to as a ‘package’).

BOARD PACKAGE and board interview (2-4 weeks)

Upon receiving an accepted offer and the attorneys being put in touch, your Wyllie Real Estate agent will have given you a copy of the building’s board application. Below is a list of paperwork that you should expect to include in the board package:
 

-Completed application
-Completed financial statement showing your assets and liabilities
-Three years of tax returns
-Three (3) most recent months’ bank statements
    *Also provide proof of investment accounts, 401k or retirement funds, etc..
-Three (3) letters of professional reference (colleagues, managers, clients, etc..)
-Three (3) letters of personal reference (ask Wyllie Real Estate agent for sample letters)
-Landlord reference letter
-Credit release form
-Contract of Sale
-Bank documents (if financing) indicating that your loan is approved  

It is important to note that applications will not be reviewed by the building’s management unless all of the documents requested are included in the package. Many of these requests may seem invasive, but particularly in a cooperative where you are becoming a shareholder in a corporation just as you want to know the building is in sound financial standing the other shareholders want to know the same about incoming owners.

If purchasing a condominium much of the below will not be relevant to you because of the asset structure you are purchasing. As the Buyer, you will likely only be required to fill out and information packet, have your credit history run, and provide your loan approval paperwork or proof of funds to close on the property.

BOARD MEETING The schedules for cooperative board meetings vary depending on the size of the building and the formality of the board, but they are generally held once a month. The interview should be taken seriously and should be discussed beforehand with your Wyllie Real Estate agent. The Seller’s broker will be told whether or not the Buyer has been given the okay by the building’s managing agent within a week after the board interview.

Condominium boards generally do not meet with potential purchasers instead they review your application and approval is often granted via the managing agent.