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Buyer Resources > Timeline Guide for Purchasing
The Castle Point Time Line Guide for Purchasing:
Here are the steps you'll take to find and close the apartment of your dreams:
Seek pre-approval for a mortgage:
Typical time frame: 1 - 2 days
You must know how much you can spend before you spend it. Condominium apartments require at least 10% down; cooperative apartments generally require at least 25% down. However, every building is different. Most of the apartments in Hudson County are condos.
Find an apartment:
Typical time frame: 1-4 months
Depending on what you are looking for, the length of your search will vary. The average person sees 20-25 apartments before deciding on one. Internet-savvy buyers save time by doing their 'homework' before their search. The average number of apartments viewed before buying by our internet buyers is 4-5.
Negotiate on the Apartment:
Typical time frame: 1 day to 1 week
Everything is negotiable so inquire about assessments, fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washer dryers, etc. Apartments are delivered 'swept clean'.
Sign a Contract:
Typical time frame: Immediately /3 Day Attorney Review
Generally, in a sales transaction, the buyer’s real estate agent draws up the offer to purchase in contract form. It is then delivered to the seller’s real estate agent. The seller signs the contract and then the fully executed contract is forwarded to both attorneys for a 3 day attorney review period. During this 3 day period the attorneys will review, make changes, and add contingencies to the contract. Once jointly agreed upon as acceptable, the contract is reinstated. After this happens the buyer has an agreed upon number of days to forward the agreed upon percentage of the down payment to the seller’s attorney for withholding in their trust account. The other portion of the down payment will be given at time of closing. Possible contingencies: Financing, Board Approval (co-op), closing dates. (See our list of closing costs associated with buying and selling condominiums and cooperatives.) The quicker the contract can be signed, the better. A contract is binding only after both parties sign it.
Apply for a mortgage:
Receive Commitment Letter from Lender.
Typical time frame: 6 - 9 weeks
Note: Mortgage applications cannot be processed without an executed contract.
The following is for Co-Op only
If an apartment is being financed, the board requires a commitment letter from a lender. These letters are generally the last items to complete a board package/condo application.
- Complete a Board Package or Condominium Application:
Typical time frame: 3 - 9 weeks
Condominiums require an information packet to be completed before a closing can take place. Board packages/Condo applications are given to potential purchasers to fill out after a contract has been executed. If there is no financing, it usually takes about 2-4 weeks to gather the information for the board condominium application.
Cooperative apartment buildings require board approval before a closing can take place. In order to review a potential purchaser, the Board of Directors for a Coop demand extensive information in a Board Package. Most Boards request the following information: full financial disclosure (net worth) with supporting documentation, employment history, current salary, personal and business references, tax returns for the previous 3 years, credit history, etc. If a purchaser cannot or does not want to supply this information, he/she should buy a condominium.
- Submit Board Package or Condo Application for the managing agent's review:
Typical time frame: 1-4 weeks
After the buyer's real estate agent completes the Board package, he/she will forward the package to the managing agent of the building. The managing agent will inspect the package to ensure it is complete. The package will then be forwarded to the Board of Director's of the Coop. After the Board reviews the package, they will decide if they would like to meet the potential purchaser.
- Meet the Co-op Board for an Interview:
Typical time frame: 30 minutes - 1 hour
Coop Boards typically meet once a month, and some Boards do not meet in August. Every Board is different, but generally a Board Meeting will be held in the evening on a weeknight. Although a board interview may be granted, this does not guarantee board approval.
- Receive Approval from Board:
Typical time frame: 1 day - 1 week after board interview . The managing agent will generally alert the seller's broker whether a potential purchaser has passed the board.
Appraisal:
Typical time frame: 5 days to schedule and complete.
The mortgage lender will schedule an appraisal of the property with your Realtor.
Inspection:
Typical time frame: 5 days to schedule and complete.
The buyer should hire a recommended licensed home inspector to examine the property and make sure all aspects are in working order. Inspection reports will be sent to buyer and seller's attorney for review. Any repairs needed must be worked out before closing.
Final Walk Through:
Typical time frame: 1 day before closing.
The buyer and their Realtor walk the property before closing to make sure all issues from the inspection have been addressed. Also, to make sure there are no new issues that have surfaced.
Schedule a Closing:
Typical time frame: 1 week
Managing agents generally set the date for closings, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times.
Typical Time Frame from the time an apartment is found, to the time an apartment closes: 1-3 mos.
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