Board Package Preparation
One of the most important aspects of purchasing a co-op apartment is completing a purchase application and assembling a board package—a comprehensive presentation of financial documents and references. The primary purpose of the board package is to assure the corporation of your financial ability to support the apartment and to give them confidence that you will be a “cooperative” shareholder and welcomed member of their community.
Each co-op has its own set of requirements and application forms, which we will obtain for you from the managing agent of the building. The most common elements are the following:
Purchase Application: This should be typed. Fill in all blanks and answer all questions (even with, if necessary, “not applicable”).
Credit Release Form: This allows the managing agent to obtain a credit check for each applicant.
Financial Statement: This is a statement of all assets and liabilities and supporting documents. It is very important that the sums on the statement reconcile with the attached supporting documents. Every item on the statement (except personal property) must be documented. Don't forget to add earnest money (deposit on contract) in the asset column.
Reference Letters: A combination of personal and business reference letters are needed. These letters give the board an opportunity to know you. Have your friends and associates write wonderful things about you-but do ask them to include some basics: How long have they known you? In what capacity did you meet? Why do they think you will make a great neighbor? If they live in a co-op or have served on the board at their building, it is a good thing to mention. Letters should be addressed to the Board of Directors, on letterhead and with their contact information.
Tax Returns: Most co-ops require two years' worth of tax returns including all schedules and W-2 forms.
Landlord Reference: This verifies your prompt payment of rental or maintenance charges.
Bank Reference Letter: Just ask a banker at your local branch. They do this all the time and will know what you are talking about.
After you've gathered together all your documents, we will have them copied and submitted to the managing agent for you. As a rule, if you are applying for a mortgage, managing agents do not accept any papers without a written commitment letter from the bank.