Co-Op Buying Part 1 of 2
This is part one in a two part series of how to buy a Co-Op. We are going to talk about what a Co-Op is, very quickly talk about the process, and next we will talk about the details of what you need to qualify.
Co-Op is short for cooperative and essentially you have to look at it as the whole building being a big pie and your apartment is one small slice of that whole pie. It is a little bit different than if you want to buy a house or a Condo but at the end of the day, if this is your primary residence, there is no real difference.
The process goes as follows. After you find the unit you like and come to the point where you have accepted an offer and have a signed contract, you now have a Co-Op package. This generally requires diving into your financial world and will have different factors requiring letters of recommendation and so on.
One thing that is important that everybody understands is that this requires you to do all of what it asks. None of this is optional. If the process is too intrusive then maybe a Co-Op isn’t for you.
The other thing to realize is that everyone who has lived in the building has gone through this process. It secures you in knowing that everyone else in the building can afford to live there.
After you have put this big package together with the care of your broker it then goes to the Co-Op and they review it. They then will have an interview. An interview can last anywhere from twenty minutes to two hours. They will sit there and talk to you about yourself, why you like the neighborhood and the financials.
It can be stressful to some people and usually within a day to a week you will get an answer from the Co-Op board as to whether or not you have been approved. Then you can clear to close.