Board package prep

When you buy a co-op, the building’s board reviews your finances and background before it approves the sale. You apply with a board package: the building’s application plus your financial documents and references. A complete, organized package is the best way to avoid delays. Condos ask for a shorter application so the board can waive its right of first refusal.

When you submit it

1. Your offer is accepted and both sides sign the contract.
2. You apply for your mortgage and receive a commitment letter from the lender.
3. You submit the board package to the building’s managing agent, with the application fees.
4. The board reviews the package and, if it moves forward, schedules an interview.
5. The board approves or turns down the purchase. Once approved, you can schedule the closing.

What a typical package includes

Every building has its own application and list. Use it exactly as written. Most ask for:

• The building’s application form, filled out and signed by every buyer.
• Financial statement listing everything you own and owe. Many buildings use a standard form.
• Tax returns for the last two years, with W-2s or 1099s.
• Recent pay stubs and an employment letter stating your title, salary and start date.
• Bank and investment statements, usually the last two to three months.
• The signed contract of sale and your mortgage commitment letter.
• Reference letters: usually two personal, one or two professional, and one from your current landlord or managing agent.
• Permission for a credit and background check, with the building’s fee.
• Building forms such as the house rules, pet and alteration policies, and lead paint and window guard notices, signed.

What boards look at

• Debt-to-income ratio: how much of your income goes to housing and other debts. Many boards look for a lower ratio than lenders do.
• Savings after closing: money left over once you pay the down payment and closing costs. Many boards want a cushion equal to a year or more of housing costs.
• Credit history and a steady income.
• A complete, consistent package. Numbers on the financial statement should match your tax returns and bank statements.

Boards may not turn down a buyer because of race, religion, national origin, disability, lawful source of income or any other protected class under New York City and State fair housing laws.

Tips that save weeks

• Ask for the building’s package requirements as soon as your offer is accepted. Mena Realty requests them from the managing agent for our buyers, so you can start gathering documents right away.
• Explain any large deposit or gift in a short signed letter, with proof of where the money came from.
• Black out account numbers except the last four digits, unless the building says otherwise.
• Follow the building’s order and format exactly, digital or paper. Never send originals.
• Ask your references to write short, specific letters on letterhead, signed and dated.

The board interview

• Everyone buying the apartment usually attends. Dress as you would for a job interview and arrive on time.
• Expect friendly questions about your work, why you chose the building and how you plan to live there.
• Keep answers short and honest. Do not bring up renovation plans or rentals unless they ask.
• The board does not decide at the interview. You or your agent will hear from the managing agent afterward.

Common questions