Before you start looking for a co-op, condo or townhouse to buy, you’ll need a mortgage pre-approval letter--both to gain a realistic understanding of what you can afford, and to assure a seller that you are a serious, qualified buyer by submitting it when you make an offer.
The preapproval letter is based on information that you (and your partner if you have one) submit to a mortgage lender or mortgage. The information includes social security numbers, employment details (lenders usually look for two years of continuous employment), proof of income, bank and investment account information and income tax documents. You’ll typically need to show a debt-to-income ratio--your monthly debt obligations divided by your gross monthly income--of 36% or less, with some exceptions.
Your pre-approval letter is typically good for 60-90 days. Note that it does not guarantee you will be approved for a mortgage.
Looking to buy a co-op apartment? National Cooperative Bank offers competitive rates and easy pre-qualification. With 40 years of lending to buyers in New York City, NCB is the bank for co-ops. After all, Cooperative is our middle name! Call us at (646) 201-4714 or email Brittney Baldwin at [email protected]. NMLS #507535. Equal Housing Lender.