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 7 - Getting Financing in Place.
If you're paying cash this is no problem, you just need to liquidate some money here there, talk to your accountant, they'll put that together for you. If you're working with a mortgage broker then once you have contract in hand, you go into the bank website fill up a mortgage application, you already have the pre-approval with them so there's probably a whole system that you have set up so follow their instructions. They're going to review some more of your documents, they're going to order a questionnaire for the building to make sure that the building is financially sound, just like your attorney does due diligence the bank's attorney and the banks on the right are due diligence on the building to make sure their risk is okay. They are also going to send an appraisal over to the property and the appraisal is going to tell them what they believe the market value of their property is, more often than not it comes at ask because usually the market value of a property is how much a buyer is willing to pay for it. And once the lender and the underwriter of the lender have everything lined up and everything is okay ready to go they produce something that's called a commitment letter, that's telling the board and the title company and the buyer that they are committed to perform in this mortgage once you have that within a week or two usually you're ready to close on your property.