So your client has decided to take the co-op route to owning a home in New York City. They like the building, but does the building like them? That’s the million-dollar (or more) question. To be the most helpful and thorough Expert you can be, you’ll want to help your client put together a package for the board to help them answer that question. This handout, which you can give directly to clients, contains StreetEasy’s best practices for submitting a successful co-op board package.
PREVIEW:
It’s a collection of personal, professional, and financial information to be submitted to the co-op board as part of the approval process. Think of it like an application. However, it’s important to note that the practice is not standardized, and each building has its own unique requirements.
For most buildings, you’ll have to produce:
No matter the building, your financials are by far the most important part of your co-op board package. If they’re not rock solid, the board may not even look at the rest of your package. They’ll want to see a debt-to-income ratio below 30%, substantial money in the bank, and enough leftover cash after closing to cover your mortgage payments and maintenance fees for a year. Include statements for all of your accounts, covering assets, debts, and liabilities. Make sure everything is well documented.
Upon signing a contract of sale, you’ll typically have 10 days to submit your package to the co-op board. However, it’s best to start preparing your package as early as possible. Stay on top of your agent, mortgage lender, bank, employer, references, and anyone else you’ll need things from to assemble your package. Get what you need from them ahead of the final deadline. Hold yourself accountable to do your parts, too. If the process is digital – which is becoming more and more common – familiarize yourself with how it works, and make sure you have access to a scanner.
Whatever you do, don’t wait until the last minute!