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With competition increasing over a dwindling inventory supply, the current market presents numerous challenges for buyers. It is our pleasure to provide you with the key steps and information about the buying process, so that you are prepared to buy your dream home as quickly and easily as possible. The typical time frame from when the co-op is found until closing is 3-5 months.
Before going out to see properties with your Kurland agent, be sure to complete steps 1&2.
1. Speak with a mortgage broker who services the NYC market to get pre-approval for a mortgage. A pre-approval letter specifies your borrowing power and price range. We recommend:
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Eric Stam
Senior Loan Consultant
Blackstone Mortgage Corporation
100 Crossways Park West, Suite 215
Woodbury, NY 11797
Phone 516-364-7700 Ext. 30
Fax 516-364-8300
Cell 917-846-2459
estam@blackstonemortgagecorp.com |
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2. Contact a real estate attorney familiar with the Manhattan market to represent you as well as a NYC CPA. We recommend:
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Adam K. Kurland, Esq.
Attorney at Law
FENSTER & KURLAND LLP
337 North Main Street Suite 11
New City, New York 10956
(845) 638-4700 Phone
(845) 638-4767 Fax
akurland@fkllp.com |
Jerry Palumberi, CPA
Palumberi & Rafieli
Seven Penn Plaza
New York, NY 10001
(212) 532-8261 Phone
(212) 532-9707 Fax
jerry@gprcpa.com |
3. Once your Kurland agent has found you the right property, convey your offer (verbally or in writing) to him/her, which must include the offering price, proposed closing date, and what you would like to remain in the apartment, if anything. Your agent will then submit an offer on your behalf by composing an official offer letter, which will be sent to the seller or the seller’s agent, along with your pre-approval letter and financial information.
4. The seller may accept your offer or negotiations may be necessary. If your offer is denied or countered, a prompt and aggressive counteroffer will help to ensure that it is accepted. Your Kurland agent, along with a Kurland Sales Manager, will carefully guide you through this very important step.
5. Once the seller accepts your offer, the seller’s attorney will prepare a contract of sale. Once your attorney approves that contract, the Prospectus and the House Rules (building guidelines), he/she will instruct you to sign the contract. Before signing, however, you may choose to have your CPA review the financial condition of the building and deem it sound. Additionally, you and/or your attorney should review the last 12 months of the building’s Board minutes (meeting notes), which you will find at the managing agent’s office.
6. When you sign the contract, you will be required to present a deposit of 10% of the purchase price, typically payable to the seller’s attorney by personal check. The contract and the deposit will then be forwarded to the seller’s attorney and placed in an escrow account. It is important to note that until the contract is signed and delivered to the seller or seller’s attorney with the deposit check, the seller has the right to entertain and accept other offers.
7. If financing, you should now move forward with your loan application.
8. Your Kurland Realty agent will provide you with the Board requirements and application materials. You will need to provide and complete all of the required materials. In order to keep organized, we recommend using an accordion file, with labels on each section. The necessary materials typically include:
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an application |
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a financial statement |
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all requisite support for your financial statement |
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two years of tax returns |
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bank statements |
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letters of personal and financial reference |
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a letter of employment verification |
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the contract of sale |
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bank documents (if financing) indicating that your loan is in place |
9. Once you receive the mortgage commitment letter from the bank, add it to the application package.
10. When your package is finished, it will be reviewed by your agent as well as a Kurland Realty Manager, who will then forward it to the Building Management Agent for review. No application will be accepted by a Managing Agent unless they are complete. Upon determination that it is complete, in order, and that credit checks were acceptable, it will be forwarded to the Board of Directors.
11. If your application meets initial approval, you will be invited to be interviewed by the Board. Your Kurland agent will prepare you for the interview. He/She will convey what to expect and coach you so as to maximize our chance for approval. After approval by the Board, the attorney will schedule a day and time convenient for all parties for the closing.
12. Your attorney will provide you with a list of checks to bring, which will typically include a second check for at least 10% of the purchasing price, and will let you know the date, time, and place of the closing.
13. The day before or the morning of the closing, your agent will take you to the apartment to make sure that everything agreed to in the contract is actually there and in working order.
14. Closing – Bring your checkbook, making sure to have a few extra checks. Your closing should run approximately 1-2 hours, as long as everyone is on-time and all paperwork is complete and in order.
15. Congratulations! You did it! |
