Reserves in co-op purchase

To my understanding it's something they look at once, when you purchase. There is no periodic checking of existing shareholders, that would be too onerous even for New Yorkers to bear!

Honestly, I'm not sure why co-op owners don't just all get together and vote to convert to condo ownership. The value of their homes would skyrocket overnight. Guess it's just inertia. Sad.

P.S. Did you put an offer in yet? If not, I highly suggest checking out a Hauseit etc. to get a rebate of the broker commission back to you. It's free to begin with, and you'll have more reserves :-)

Once you are approved, they can not ask for financials on an ongoing basis. At the time of application, they may look back at your bank statements (some require last three months) and ask you to disclose the source if you have a sudden increase in cash.

They're never going to look after approval. Lots of people have that money for the board and then spend it on move-related expenses or renovations/painting/etc.

The only time you'll have to share your financials is when you make an offer (rebny financial statement) and when you submit your board package (plus board interview).

They will never (nor have the right to) check your financials after you're a shareholder. Same with HDFCs, you're in the clear after you buy.

That's why people show a lot of cash, then after they're a shareholder they spend their commission rebate check, excess reserves, extra months' maintenance on whatever the hell they want. Usually renovations.

Thanks, all, for your input. Much appreciated. And very glad to hear!