Hi John. I would suggest you go through the links Mr. Hall has provided. I find him to be one of the top voices on this site and his advise is highly regarded by me.

I'll throw a book into the mix as it is something you cn take with you as you go about your day. The book is: "The ultimate guide to buying and selling coops and condos in New York City." This book is by Neil Binder, the principal and co-founder of a highly regarded brokerage in Manhattan.

It's a good read and answers a lot of questions. Having said all this (typed). I strongly suggest you find yourself a good agent/broker to help you purchase when you are ready. Good luck.

There is many articles about the difference between Condos and Coops in NYC. The guidance for the purchase is very simple and the broker will assist you when you decide for one of them. The basic differences between them you probably know. Some steps are the same for both. I strong recomend you to choose a broker to assist you.
Any further information feel free to contact me.
Manhattan-Spaces
Vera Aricha
917-378-9673

Hi John,

Educate yourself before looking for a home. Look for free first time home buyer seminars sponsored by local not-for-profit organizations. The federal Department of Housing and Urban Development (HUD) has a hotline number to help you locate free pre-purchase counseling near you: 1-800-569-4287.

Do not let yourself be pressured to sign anything. A legitimate business should always give you time to review a contract before signing. Never sign a document with blank spaces.

Have your own attorney review all contracts and loan documents before you sign. It is not a good idea to use an attorney provided by the seller or the lender. Ask your attorney about any provision you do not fully understand. One way to find an attorney in New York City is by calling the Bar Association Referral Line at (212) 626-7373.

Shop around for the best mortgage terms for which you qualify. Mortgages with low down payments are available from a variety of lenders. The seller should not require that you use a particular mortgage bank. You can request free brochures on choosing a mortgage from the FannieMae Foundation by calling 1 (800) 605-5200 and from the New York State Banking Department by calling 1 (800) 522-3330.

Get an independent inspection of the home. Negotiate a provision in the contract that states that you have the right to get an inspection by someone of your choosing and to cancel the contract if you are not satisfied with the inspection. Choose a licensed engineer or architect to perform the inspection. Do not rely on the appraisal that is provided by the lender.

Promises of future repairs and renovations can lead to future problems. Have all promises put in writing. If, at closing, all work is not complete, make sure repair money is put in an escrow account until it is done.

There is no such thing as a FHA-warranted home. If a business tells you that the house is inspected by a government agency, or that the government guarantees the house is in good condition, be careful!

Before you close on the house, make sure you and your attorney understand and agree with any last minute changes in the documents.

http://www.ag.ny.gov/bureaus/real_estate_finance/physical_as…

DOM PASCUAL, J.D., ESQ.
ASSOCIATE REAL ESTATE BROKER
"We combine excellence with intelligence."
Green Homes NYC
1140 Broadway
New York, NY, 10001
Cell: (631) 741-2764
E-mail: dompascual@gmail.com
Blog: http://dompascual.wordpress.com/
Listings: http://dompascual.postlets.com/
Twitter: http://twitter.com/dompascualesq
Facebook Profiles: Dom Pascual; Manhattan Broker

I am blown away by the high level of professionals who responded to this questions but also by the high level of useful information you received. I applaud all of you. To the originator of the question when you have researched all of the information and would like to be Pre Approved for the financing feel free to contact me. I am local (live in Manhatten) and have been providing clients with mortgage financing for over 16 years. I would like to be able to assist you as well. You seem to have a number of Agents and Brokers to reach out to. On the financing side feel free to reach out to me anytime.

Best regards,
Peter Brown
631-393-7524
Peter Brown

My closing costs guide may be of assistance, you can downloan it for free on the link below, choose "Industry Resources"

Hi John,

I've written many blogs both here on Trulia and on my own blog about the coop and condo purchasing process:

http://nycblogestate.com/2007/04/understanding-cooperatives-…

http://nycblogestate.com/2009/06/how-much-apartment-can-you-…

http://nycblogestate.com/2011/10/buying-coop-be-prepared-and…

http://nycblogestate.com/2012/01/time-line-for-buying-manhat…

http://nycblogestate.com/2011/10/coop-board-requirements.html

http://nycblogestate.com/2009/05/tips-to-help-pass-coop-boar…

http://nycblogestate.com/2007/04/closing-costs-for-nyc-condo…

These are just a few of them. I've been blogging about Manhattan Real Estate since 2006. The link below has many more articles, resources and links about buying coops and condos.

It is always a good idea to work with an experienced local buyer's agent. If you have any questions or need help feel free to contact me.

Best,

Mitchell Hall, Associate Broker
The Corcoran Group
917-312-0924
mhal@corcoran.com

That's why you need a Real Estate Professional to guide you carefully thru that process. You can also check more details at http://www.nestseekers.com/Guides/Buyers.

Warmest Regards,

Raoul Sodogandji
Global Market Specialist
Licensed Salesperson

(o): 212.252.8772 (EXT.782)
(c): 347.993.8333
(e): raouls@nestseekers.com

The very first step would be to get a pre-qualification letter or even better, a pre-approval letter from your bank or your mortgage broker. That is the best way to find out exactly what you can qualify for, this is especially important if you are going to be purchasing a Cooperative. Most Co-op's require that your mortgage payment plus the maintenance not be more than 25-28% of your income. The next step is to find a qualified, experienced and respected real estate broker, who is familiar with the area that you are interested in purchasing a property in. If you are looking in Manhattan, I would be happy to help you with your search. Please feel free to contact me any time. I look forward to hearing from you!

Leslie D. Bott
Real Estate Associate Broker, Senior Vice President
Fenwick Keats Real Estate
917 589-4343
lbott@fkrealestate.com

My advice is to work with a knowledgeable real estate agent! Every deal is unique. Some glide through, but many hit multiple speed bumps along the way!
I am currently looking for buyers to represent. Feel free to contact me directly.

Sincerely,
Marianne Ciccantelli
Terris Realty
Mobile: 917/273-8347

Consider working with an agent of your own, he/she will be your best guide; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.

Dear John,

The best advice is to find a knowledgeable realtor with whom you can establish a good relationship. There is no cost to you as a buyer to utilize a realtor's expertise in navigating the idiosyncrasies of the New York City condo/co-op market, since commissions are paid by the seller.

I would be happy to discuss this further with you, at your convenience.

Best regards,

Rick Hoyt


Richard Hoyt
Real Estate Salesperson, REALTOR®
Vice President
Fenwick Keats Real Estate
O. 646-352-0008
C. 917-842-0463
rhoyt@FKrealestate.com

Hi John -
Below is link to my firm's buyer's guide. This is a great overview, if you have any more specific questions, I would be happy to discuss further, either via email or phone. All of my contact info is below.
Best,
Chris
__________________
Chris Connor
Vice President
Prudential Douglas Elliman
1995 Broadway, 4th Floor
New York, NY 10023
Office: 212-769-9838
Cell: 917-886-9734 http://www.elliman.com/chrisconnor

Hi John,
Looks like you share a zip code with our office 10010 :)

Yes, we have a printed handout that we give to our buyer customers that lays out the detailed step by step explanation. The basics are the same throughout:
1. Offer-Acceptance
2. Attorney due diligence
3. Contract
4. Mortgage application
5. Mortgage commitment
6. Coop/Condo Application submission
7. Application processing and approval
8. Closing

What varies is the fee strucure - coops cheaper, condos more expensive in closing costs

and

Type of ownership - condo is title ownership also known as "Fee Simple" and coop is ownership of shares also known as "Lease Hold"

The reason I am laying this out for you in this format, is because after reading 5-6 pages of that document this is what you will take away in a nutshell.

Then there is a side of this for which you may want to use a seasoned buyer-agent to do the following:
1. Do some due diligence BEFORE you put in offers or in some cases even spend time going to see property
2. Do comp searches to gain as much leverage for future negotiations
3. Ultimately negotiate the best possible price FOR you
4. Be on top of every detail after you have an accepted offer to make sure things move as they should
5. Help complete, proof-review, copy and submit your application to the building
6. Coordinate your closing
7. Take you on your final walk through
8. Come to your closing to make sure all goes smoothly

And in case you didn't know, your broker gets paid from the compensation set forth by the seller.

I hope you find this helpful. I am reachable at 917-848-6928

Warm regards,
Armen http://www.luxdwellings.com

Hello John,

These are the steps in the order of importance:

1) Get copies of your credit reports from all 3 bureaus and know exactly what is on the reports. This information effects the amount of money the mortgage ccompanies would be willing to extend and the interest rates they will charge.

2) Get Pre-approved by a major lending institution. Get that letter from them clearly indicating the amount of money you qualify for.

3) Find a real estate agent or broker who you feel will offer you the best representation. This does not cost you anything as their commission is paid by the seller. A good agent could save you significant sums of money and save you loads of time.

4) Once you have found the apartment you desire, have your agent submit an offer to the agent representing the owner and express the rationale behind the price offered.

5) If there is a meeting of the minds as to the price, the agent representing the owner will get to your agent all the relevant documents that should be submitted to an attorney representing you. The attorney will need to do their due deligence about the building.

6) At the same time, you would also submit the information to the bank from which you plan to get a mortgage and recieve a commitment letter.

7) At this time, your agent should be preparing a complete presentation called a "Board Package" that will be submitted to the management company of the building. This board package gets reviewed and once it is approved, in case the building is a condominium - the board waives its right of first refusal & in case the building is a co-op - an interview is scheduled with the members of the board.

8) After board approval, a closing is scheduled at the convenience of all parties involved.

9) A final walk-through is conducted by you (the buyer) prior to the closing to check for any defects that need to be remedied and addressed during the closing.

10) You are the proud owner of your new home after the closing.

Hope this helped. If you wish to discuss anything in more detail. free free to give me a call or email me.

Sincerely
Anoop Punjabi
Certified Real Estate Advisor
City Connections Realty Inc
apunjabi@ccrny.com
917-972-6009

Hi John,
Of course...however its better for you if we have a conversation since everyone's location, budget and needs affect which one makes the most sense. My number is 917 658 4755
In addition, my website is below which offers information about buying, coops and condos and our role in the process. All the best!

Hi, I created this blog post a while ago...

I have been receiveing alot of questions about Coop Apartments, what they are and how the operate. A Coop is a corporation made up of all the occupants of the building. When You buy a Coop you are not buying an actual unit, you are buying shares in a corporation. You will receive a stock certificate and a proprietary lease which entitles you to occupy the unit.

Since the occupants do not own the unit they do not pay property taxes like you would in a condo or house. You pay a monthly maintenence fee wchich includes your pro-rata share of the buildings property taxes, and care for the grounds, etc. If in NY you will qualify for the basic STAR reduction but will have to inquire with your particular Coop to see how they handle it. There are additional fees that vary from parking, assessments, flip tax, storage, etc. Again each building is different and you will have to inquire about any additional fees. There is a percentage of your maintenece that is tax deductable, usually 45%-55%, but it can vary. There is always a minimum down payment requirement which can range from 10%-50% down, depending on the Coop. Nowadays alot of Coops are requiring 20% down to protect themselves and make sure only the qualified apply. Even the banks are requiring this so times have changed a bit. On occassion you will find a "Sponsor Unit" available. This is a unit that is on the market by the sponsor for the first time. These are highly sought after because they usually don't require a board interview. This is good for the first time only, the next time it goes on the market a board interview will be required. Keep in mind just because at first you don't need an interview the board usually still looks at the package.

When purchasing a coop part of the process is a board interview. Many people get scared and worry about what it will be like. Once you have an accepted offer on a unit you will receive a board package to fill out. This includes a standard application, request for financial information (bank statements, W-2s from previous and current years, pay stubs, etc.) Here are a few major things the board will look at...1) Amount of down payment, where it came from, and how much you have in reserve after making it. Most Coops want to see a few months reserves at least. 2) Credit scores, do you have any judgments against you, how much debt you have. They look at your "Front End Ratio" which is how much debt you'll have with just housing payments and "Back End Ratio" housing debt along with any other existing debt you have; credit cards, loans, etc (student loans sometimes get deferred, you'll have to inquire). They will have a debt-to-income ratio requirement which can vary. 3) Current Income is important as well, they want to see that you make enough and aren't spending everything you have to pay your bills. Having alot of cash in the bank doesn't impress them, that can be spent quickly. You will also get a copy of the by-laws (house rules) and the offering plan. The offering plan tells how many units are in the building, what the exisiting mortgage is on the building, how much the building has in reserves, etc. You will have a chance to review these with your attorney to make sure you are buying into a financially sound building.

The application can be a bit intrusive but the Coop does this to make sure that they don't take on any financial liabilities to the building. They will only hurt the corporation. Once the package is complete it can be submitted for the managment review and once they approve it, it's then passed on to the board members. Once the board reviews you will be contacted to come in for an informal interview. They might ask questions regarding your motivation for buying in the building, questions about your finances, or just general questions to get to know you further. They will have a pretty good sense of who you are by your package already.

My advice to you...stay calm, don't over answer their questions, be positive! At times you will find out right away if you are approved and others you will be notified the next day, or so by the management company. The approval needs to be in writing and sent to the attorneys on the deal to make it official. Once approved you can finalize everything with the bank and setup a closing. I hope this answers some of your questions and I welcome any further inquiries.

I have a step by step guide on my blog. Please feel free to contact me with any questions.

best,
Jordan

actually i do. Please send me an email to sdelgado@brgnyc.com.. So I can forward you the guide.

Best Regards,

Sheilynne Delgado

Yes, we have step by step buying guide here is link. Leila Yusuf 9174780557 lyusuf@stribling.com

http://www.schumanlawfirm.com/purchasing_guide.pdf

http://www.stribling.com/pages/buying-guide

http://www.facebook.com/notes/leila-yusuf-real-estate-in-man…

Being that this is usually the single largest purchase most people ever make I STRONGLY suggest you read "The New York Co-op Bible". I give all my clients a copy. You can do a google search and come up with some info but it pales in comparison to the book.

Cyrus Zafaranloo
917 776 2977
czaf@uptonrealtygroup.com