Standard Fund Requirements
The Budget
Meet with a mortgage broker to see how much you can afford before you start the search. They will help you figure out how much you can put down and what monthly amount your mortgage payment should be. After, you will need to figure out what’s most important to you (ie Location, size (specific square footage), amenities, building type, school locations and nearness to public transportation).
Property type
Are you interested in an For apartment purchases there is no approval process, besides normal financial inquiries. Buyers are entitled to have complete control over any renovations they wish to make. Maintenance costs are the sole responsibility an owner and with this the owner gets total control over maintenance and repairs. Transferring deeds or reselling an apartment do not require approval. The size of a property can vary according to a budget and location of the property.
Condominium Purchase
When buying a condo, owners are purchasing the apartment and also own a percentage of the common building areas, i.e. entrance areas, hallways and recreational areas etc. The condominium is considered real property; since owners have the right to use the property how ever they see fit and are subject to pay property taxes (this can either be escrowed into a monthly mortgage payment or paid annually). Monthly maintenance fees are usually paid directly to the condominium association.
Coop Purchase
Purchasing in a co-op can be challenging. When you purchase in a co-op, you are buying shares in cooperation. The shares directly correspond to the unit in which you live. The fees include a monthly mortgage and maintenance fees for the building. Remember that mortgage payments and maintenance fees generally result in higher tax deductibles.
Submitting a Board Package
Once a buyer receives his or her mortgage-loan commitment letter, the board package is submitted (if this is a cash deal it can be done right away) to the Managing Agent. The Managing Agent will look through the application to make sure everything is in place. They will evaluate the credit and references and the submit the package to the board if everything looks correct. Don’t be in a rush to submit the package until you have all of your I’s dotted and T’s crossed, the managing agent will have no problem returning the package for further clarification which will delay the process. Finally, the board will review the completed package and if no additional information is requested, you will be invited for an interview with the board. There is usually an interview committee that approves ne applicants or the board will meet with you during their monthly meetings.
Scheduled Closing
After the board approves the applicant, a closing is scheduled. It generally takes 2 weeks to schedule a closing dependent upon all parties being available (ie managing agent, buyer, seller, lawer and banks).