In order to approve the purchase, the Board of Directors of a co-op/condo will require information about your income and net worth. Although Boards have different requirements, they typically expect your carrying costs (mortgage, maintenance, common charges & real estate taxes) to be no more than 30% of your net income. It is also expected that after the purchase, you will have a given sum in liquid assets – the actual amount varies from Board to Board, ranging from 2-3 months of the maintenance fee (or common charge) and taxes, to as much as 50% to 100% of the purchase price. How much of the purchase price can be financed also varies, depending on the building guidelines. The range is usually 0% to 80% for co-ops and up to 90% for condominiums.

To help you determine how much money you can invest in your dream home, below is a list of information that will be required by the Board and the bank.

1. Income Annual

2. Assets

3. Liabilitie

4. Networth ____________________ (Assets minus Liabilities)

5. Down payment: ____________________

6. Approximate monthly carrying cost: ____________________
(28% to 32% of income)

7. Mortgage amount pre-approved by bank: ____________________