where to start
START YOUR SEARCH
- "Sell yourself" as a qualified buyer. There may be a limited
number of lofts available in your price range. In a tight market, good
properties often go to contract before they appear in the classified
ads and agents always notify their serious buyers first. The best way
to be first on the call list when an agent gets in a hot new listing
is to prove to them you're a "ready buyer:" Have your financial
documents in order, get pre-approved for mortgage financing if applicable,
and take the time to thoroughly explain your needs. Be direct about your
budget, timetable, and specific apartment or neighborhood priorities.
- Be available to view properties. Be flexible. Many of the "better" buildings
permit showings only between 10 A.M. and 3 P.M. during the work week.
By making yourself available to view a property during the work week,
you avoid the congestion of weekend shoppers and the heavy competition
of "open houses". There is nothing more exciting than being
the first buyer to make an offer.
MAKE THE DEAL
- When you find the loft you want, make a verbal offer immediately. Strategize
with your agent about how to best present your offer to the seller. There
are many factors besides price that can influence the seller's choice
of buyer.
- Verbal offers are not legally binding. When a seller accepts a verbal
offer it means they are ready to do business. Manhattan Lofts agents
place all offers in writing.
- Once the offer is accepted, your MLI agent will prepare a transaction
summary which will be sent to both the seller's and buyer's attorneys.
Based on this information, the seller's attorney will prepare a contract
of sale. After your attorney has reviewed and negotiated the contract
and reviewed the building's financial statements, you will sign the contract.
At that point, the contract and your down-payment check - customarily
10% of the contract of sale price held most often in the selling attorney's
escrow account - will be sent to the seller's attorney. The seller will
then execute the contract. For tips on reviewing building financials,
see About Co-ops & Condos.
- The offer only becomes legally binding when both buyer and seller sign
the contract of sale. In this market, sellers are often tempted by higher
offers, so it is imperative to be prepared and make sure your attorney
move quickly to review the financials and complete the contract.
CLOSE THE DEAL
- Unless the purchase is an all cash" deal, you should apply for
a mortgage as soon as both parties sign the contract. The mortgage process
can take up to 45 days and involves several stages.
- Your mortgage broker must compile your financial information and
present your loan application.
- The bank sends an appraiser to assess the value of the property.
- The underwriters review the loan package and issue a commitment.
- If the building is a co-op, while your loan is being processed, review
and prepare your Board package with your Manhattan Lofts, Inc. agent.
You will be provided with a purchase application package which varies
from building to building. A Board's financial requirements mirror those
requested by the bank, so keep a copy of the mortgage application and
all related documents. In addition, you will need to gather letters of
reference: personal, professional, financial, and, if you are currently
living in a rental, a letter from your current landlord. Your Manhattan
Lofts agent has examples of what needs to be compiled and examples of
referral letters. Do not take a Board package for granted. You need to
answer all questions and give a clear, concise picture of your financial
qualifications. Your agent will review the collected materials, organize
the presentation, write the cover letter and submit the package.
- When you receive your mortgage/loan commitment letter, the Board package
immediately is submitted to the building's Managing Agent. The Managing
Agent reviews the application, checks credit and references, and submits
the package to the Board.
- The Board will review the completed package. Sometimes they may ask
for additional information to evaluate the submitted information. Should
the package be submitted without question a Board interview will be scheduled.
The timing of the interview depends on the Board: some Boards have an
interview committee that meets on demand while others schedule interviews
during their monthly meeting. Your broker will inform you of the time
and date of the meeting and they will prepare you for the interview.
- Closing is customarily scheduled after the Board has approved the package
and completed the interview process. Depending on the availability of
all parties involved (managing agent, buyer and seller, both lawyers,
both banks), closing usually take place within two weeks of final approval.
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