Purchasing Process 1. Seek pre-approval, pre-qual or pre-commitment for a mortgage: Typical time frame: 1 - 4 days As with all buyers, you must obtain a pre-approval letter from your lender. Refer to section on Necessary Mortgage Documents below. It is very important to know how much you can spend before you schedule any appointments. Co-op apartments generally have stricter down payment requirements and debt-to- income (DTI) ratios. 2. How to Calculate your Debt-to-Income Ratios (DTI) Your debt-to-income ratio (DTI) compares how much you owe each month to how much you earn. Specifically, it's the percentage of your gross monthly income (before taxes) that goes towards payments. Step 1: Add up your monthly bills, ex. monthly rent or house payment, monthly alimony or child support payment, monthly credit card payment or other debts. Step 2: Divide the total by your gross monthly income, which is your income before taxes. Step 3: The result is your DTI, in percentage. The lower the DTI, the less risky you are to lenders. Many co-ops are looking for 30% or less.
3. Find the Apartment: Typical time frame: 1 week - 3 months
Depending on what you are looking for, the length of your search will vary. Internet-savvy buyers save time by doing your 'homework' before their search.
4. Negotiate on the Apartment: Typical time frame: 1 day to 1 week
The documents that are required for the board will be the same that will be required by the mortgage application. If you cannot or do not want to supply this information,you should not buy a
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