Is it hard to get approved for a coop?

But co-ops are usually more affordable than condos. There are also a lot more of them, so chances are, if you’re in the market for an apartment, you’ll probably at least consider a co-op at some point. And rest assured it is quite possible to get approved by a co-op board.

How do you get approved for a co-op board?

Although there are some differences in the bylaws of each co-op, the following documents are typically required:

1. Credit release form.
2. Contract of sale.
3. Recent tax returns.
4. Landlord references.
5. Bank references.
6. Financial documents.
7. Personal references.

How often do co-op boards reject?

Boards are not required to report how many co-op applications they review each year, or how many they reject. However, brokers and co-op lawyers estimate a rejection rate of about 3 to 5 percent.

Why would a co-op board reject?

Typically, a rejection by a co-op board is more “subjective,” Luxemburg says. It might be based on a determination that the buyer won’t be a good neighbor or won’t follow the rules of the building, hence the tension around the co-op board interview.

What do co-op boards ask?

Board members can ask you all kinds of things during a co-op board interview. Anything from your job history to explaining certain financial transactions to personal questions is fair game. To handle those types of questions, be ready to discuss any instability in your life.

What questions do co-op boards ask?

Common Co-op Board Interview Questions

• Why are you downsizing?
• Are you planning to renovate?
• Do you like your job?
• What are your hobbies?
• Are you interested in being on the board?
• What is your political affiliation?
• Why did you decide on this building and apartment?
• Do you plan to sublet?

What happens after coop board approval?

It typically takes two to three weeks to close on a coop after board approval in NYC. Most co-ops will issue a decision within a few days of conducting the board interview. The vast majority of co-op boards issue a decision the morning after the interview.

How should I prepare for a board interview?

Preparing for a Board Interview

1. Prepare, prepare, prepare.
2. Gain a strategic understanding of the company.
3. Research, research, research.
4. Know your value proposition.
5. Understand conflicts.
6. Understand the culture of the board.
7. What board committees exist?
8. Know your expected contribution.

What goes into a coop board package?

Co-op board requirements vary from building to building but there are some nuts-and-bolts requirements: financial statements that show assets and income, specifically tax returns and bank statements. “Those are the heart and soul of the package in broad strokes,” Harkov says.