Tips for navigating the 'board' room
by Jacques Ambron
Oct 11, 2016 | 11138 views | 0 0 comments | 323 323 recommendations | email to a friend | print
Jacques Ambron has been a real estate broker for over 30 years. He owns and manages Madeleine Realty in Forest Hills (madeleinerealty.com).
Jacques Ambron has been a real estate broker for over 30 years. He owns and manages Madeleine Realty in Forest Hills (madeleinerealty.com).
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Q. I am about to sign a contract on a co-op apartment. I always hear some scary things about boards and the application process, can you tell me whether I should expect any problems?

A. Over the years, I have had many experiences dealing with co-op boards and application processes. There are several things a board looks at to determine if they will accept you.

The first is your debt-to-income ratio. This is calculated as follows: Add your mortgage amount to your maintenance to any other debt you may have, divided by your income. This will be a percentage. Boards generally look for a 28 percent debt-to-income ratio.

The second aspect that is scrutinized is the liquid assets. At a minimum, they should cover one-two years’ worth of the monthly carrying costs, which is the mortgage and maintenance.

The final piece of the picture is your credit. Usually a score of 700 or better is required, but this isn’t a hard and fast rule. Boards will sometimes accept lower income if the assets are very good, and lower assets if the income is over the minimum requirement.

Since you will also need to assemble a number of documents for the actual application, the best course is to discuss the whole process with an experienced real estate professional who can help you piece together all the parts of the puzzle.

Send your real estate questions to jacques@madeleinerealty.com.
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