Hello this is Javier co-founder of the Thrive Real Estate Team at Compass and this is How to Purchase a Home in New York City. Part 3 - Getting Ready to Buy, specifically in financials.
From the point of view of financials it's very important because it's not just searching, each building has different rules, the financing is different, you got to be ready financially to prove to a seller that you can close on that property and then to a board of the condo or coop that you can close on that property. There are three scenarios for that, one you're paying all cash if that's the case you need to have proof of funds that can be a financial statement or you can, preferably, be a letter from the bank stating that you have enough money to close on a property of that amount you have to have that ready when you meet with your agent certainly before making an offer. The second one is your financing, if you're financing you need to make sure that you are getting a pre-approval from your lender before you go out and search. The third one is you're getting a gift of some sort either for the down payment or you're an all-cash gift or parent's buying for kids all that is good but you need to make sure you have a gift letter from them, you need to add that to your offer preferably, for sure you're going to have to have it in your board application for a condo or a co-op. Before we present anything to any seller as an offer we need to get a REBNY financial form, it's a standard form that we use as agents part of the real estate board of New York we put together the financial picture of the buyer to present to the seller so they understand that in front of any board they can actually perform on the offer that we're making without that most offers are not considered serious if you're getting a gift from a family member you want to make sure you get a gift letter or alternatively if you're thinking about buying in the long term it's 90 days out or more, you can put the gift money into your account so it seasons for 90 days so when the seller or the board looks at your last three months of bank statements they already see that money there so there's no question of whether that's yours or not. The most important part of all this is to have the financials in order and not have anything that looks weird or it's hard to explain, it always delays the closing, it doesn't make it impossible, it just delays the process of having to explain everything, just everything clean and clear to paint a good picture for the seller so they feel comfortable accepting your offer.