Timeline
Time Line Guide for Purchasing:
Mortgage Pre-Approval:
Typical time frame: 1 hour – 2 days You must know how much you can spend before you spend it. Condominium apartments require at least 10% down; coops generally require at least 25% down. However, every building is different.
Find an apartment:
Typical time frame: 1-3 months 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.
Negotiations:
Typical time frame: 3 days 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, washer-dryers, etc. Apartments are delivered ‘swept clean’.
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; the buyer’s attorney does ‘due diligence’-reading minutes, financial statements of buildings 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. A contract is binding only after all parties sign it.
Apply for a mortgage:
Receive Commitment Letter from Lender. Typical time frame: 2-4 weeks 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.
Complete a Board Package or Condominium Application:
Typical time frame: 2-4 weeks Cooperative apartment buildings require board approval before a closing can take place. Condominiums require an information packet to be completed before a closing can take place. 2-4 weeks to gather the information for the board condominium application.
Submit Board Package or Condo Application
Typical time frame: 1-2 weeks After the buyer’s real estate agent completes the Board package, he/she will forward the package to the managing agent of the building. The managing agent will inspect the package to ensure it is complete. The package will then be forwarded to the Board of Directors of the Coop. After the Board reviews the package, they will decide if they would like to meet the potential purchaser. Meet the Coop Board for an Interview. Typical time frame: 30 minutes – 1 hour Coop 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. COOPs have wide latitude with approval and may require a guarantor or maintenance escrow.
Receive Approval from Board:
Typical time frame: 1 day – 1 week after board interview The managing agent will generally alert the seller’s broker whether a potential purchaser has passed the board.
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.