Time Line Guide For Purchasing a home in Manhattan - Relocation
1. Mortgage Pre-Approval:
Typical Time frame: 30 minutes - 2 hours
You must know how much you can spend before you spend it. Condominium apartments require at least 10% down; cooperatives generally require at least 25% down. However, every building is different. Go to this web site to get pre-approved and start the mortgage process.
2. Find an apartment:
Typical Time frame: 3 - 6 months before closing.
Depending on what you are looking for, the length of your search will vary. The average person sees 10 - 25 apartments before deciding on one. Viewing apartments on-line can save you time and headaches by eliminating those you don't like. The first apartments you see are often the best, so try to be alert and ready.
Typical Time frame: 1 hour to 2 weeks
Step One: Make an OFFER. Everything is negotiable so inquire about assessments, fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washers, dryers, etc. Apartments are delivered "swept clean".
4. Sign a Contract:
Typical Time frame: 1 - 3 weeks
Typically in a sales transaction, a New York City real estate attorney represents each buyer and seller. The seller's attorney draws up the contract for the buyer's attorney review; the buyer's attorney does "due diligence", reading condo or co-op minutes, financial statements, etc. The buyers sign the contract and forward the contract with a 10% deposit; the sellers execute the contract. Possible contingencies: Financing, Board Approval, closing dates. The quicker the contract can be signed, the better. A contract is binding only after all parties have signed.
5. Apply for and get a mortgage:
Typical time frame: 24 hours to - 4 weeks
Receive commitment letter from lender. Mortgage applications cannot be processed without an executed contract. If an apartment is being financed, the board requires a commitment letter from a lender. These letters are generally the last items to complete a board package/condo application.
6. Complete a Board Package or Condominium Application:
Typical time frame: 1 - 3 weeks
Cooperative apartment buildings require board approval before a closing can take place. Condominiums require an information package to be completed before a closing can take place. In order to review a potential purchaser, the Board of Directors for a co-op demands extensive information in a Board Package. Most boards request the following information: financial disclosure (net worth) with supporting documentation, employment history, professional and personal reference letters, tax returns, etc. If a purchaser cannot or does not want to supply this information, he/she should buy a condominium. Board packages/Condo applications are given to potential buyers to fill out after a contract has been executed. If there is no financing, it usually takes about 2 - 3 weeks to gather the information for the board condominium application.
7. Submit Board Package or Condo Application for the managing agent's review:
Typical time frame: 1 - 4 weeks
Once completed, multiple copies (6-10 copies) are forwarded to the managing agent who makes sure all required information has been included. The "package" is then submitted to the co-op Board. The Board will then decide to interview (or reject) the applicant based on the "package."
8. Meet the Co-op Board for an Interview:
Typical time frame: 30 minutes - 1 hour
Co-op boards typically meet once a month, and some Boards do not meet in August. Every Board is different, but generally, a Board Meeting will be held in the evening on a weeknight. Although a board interview may be granted, this does not guarantee board approval. Although we present interview dates that are most convenient for you, board interviews tend to be "command performances" at the board's discretion.
9. Receive Approval from Board:
Typical time frame: 1 day - 1 week after board interview
The managing agent will generally alert the seller's broker or buyer's broker when a potential buyer has passed the board.
10 Schedule a Closing:
Typical time frame: 1 - 2 weeks after board approval
Managing agents generally set the date for closings, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times.
11. Closing: Bring your checkbook