Buying an apartment in New York City is not a simple process, especially if you are looking for a co-op or condo unit. You will need to pass the board approval, which requires you to submit a comprehensive and convincing board package. The board package is a collection of documents that showcases your financial, personal, and professional qualifications, as well as your plans for the apartment. The board package is crucial for getting the green light from the board, and for securing your dream home.

What is a Board Package and Why is it Important?

A board package is a set of documents that you need to submit to the board of directors of a co-op or condo building, after you sign a contract to buy an apartment. The board package is designed to demonstrate that you are a qualified and reliable buyer, and that you will be a good fit for the building and the community. The board package is also a way for the board to protect the interests and values of the existing shareholders or owners, and to ensure the financial stability and security of the building.

The board package is important because it is the main factor that determines whether you will get the board approval or not. The board approval is a mandatory step for buying a co-op or condo unit, and without it, you cannot close the deal. The board approval is also a way for the board to exercise its right of first refusal, which means that the board can reject any potential buyer for any reason, as long as it is not discriminatory or illegal. The board approval is more common and strict for co-ops than for condos, but both types of buildings require a board package.

What are the Contents of a Board Package?

The contents of a board package may vary depending on the building and the board, but generally, they include the following documents:

A cover letter or a table of contents that lists the different sections of the package
A purchase application form that provides basic information about you and the apartment
A financial statement that summarizes your income, assets, liabilities, and net worth
A copy of your tax returns for the past two or three years
A copy of your pay stubs for the past two or three months
A copy of your bank statements for the past two or three months
A copy of your credit report and credit score
A copy of your mortgage commitment letter and loan application
A copy of your contract of sale and down payment receipt
A copy of your personal and professional reference letters, which attest to your character and reputation
A copy of your employment verification letter, which confirms your job title, salary, and tenure
A copy of your landlord reference letter, which verifies your rental history and payment record
A copy of your co-op or condo questionnaire, which answers specific questions about the building and the apartment
A copy of your acknowledgment and consent forms, which indicate that you agree to the rules and regulations of the building and the board

How to Make a Good Impression with Your Board Package?

The board package is not only a collection of documents, but also a reflection of who you are. Therefore, it is important to make a good impression with your board package, and to avoid any mistakes or omissions that could jeopardize your chances of getting the board approval. Here are some tips on how to make a good impression with your board package:

Start preparing your board package early, and gather all the documents as soon as possible. You will need to make several copies of your board package, and submit them within a certain time frame, as specified in your contract. You can save time and hassle by being well-organized and proactive.
Follow the instructions and guidelines of the board and the managing agent, and make sure that your board package is complete and accurate. You can check with your broker or your attorney if you have any questions or doubts about the requirements and the format of the board package.
Organize your board package neatly and professionally, and use numbered dividers, clips, or binders to separate and label the different sections. Do not staple or bind the copies, as the board or the managing agent may need to remove, reorder, or copy some pages. Do not use plastic sleeves, as they can create glare and make it hard to read the documents.
Make sure that your board package is easy to read and understand, and that it provides clear and consistent information. You can use a spreadsheet or a software to create your financial statement, and make sure that it matches your tax returns and bank statements. You can also use a template or a sample to write your cover letter and reference letters, and make sure that they are positive and personalized.
Make sure that your board package is honest and realistic, and that it does not raise any red flags or concerns. You can avoid any potential issues by disclosing any relevant information, such as your debt, your income, your pets, your renovations, or your subletting plans. You can also explain any unusual or negative situations, such as your divorce, your bankruptcy, or your late payments.

What are the Next Steps after Submitting Your Board Package?

After you submit your board package, you will need to wait for the board to review it and to make a decision. The board may take a few days or a few weeks to process your board package, depending on the size and the schedule of the board, and the volume and the quality of the applications. The board may also request additional information or documents, or schedule an interview with you, to further evaluate your candidacy.

If the board approves your board package, you will receive a formal approval letter, which will allow you to proceed to the closing. You will need to coordinate with your broker, your attorney, your lender, and the managing agent, to finalize the details and the date of the closing. You will also need to prepare the closing costs and the fees, which may include the transfer taxes, the title insurance, the appraisal fee, the attorney fee, the broker commission, the mortgage recording tax, and the flip tax.

If the board rejects your board package, you will receive a rejection letter, which will terminate the contract. You will need to consult with your attorney, to determine the reasons and the consequences of the rejection, and to recover your deposit and your expenses. You will also need to resume your search for another apartment, and to learn from your experience and your mistakes.

The board package is a key element of buying a co-op or condo unit in New York City. The board package is a set of documents that showcases your financial, personal, and professional qualifications, as well as your plans for the apartment. The board package is crucial for getting the board approval, which is a mandatory step for closing the deal. The board package is also a reflection of who you are, and it is important to make a good impression with it. The board package requires careful preparation, organization, and presentation, and it may also involve some waiting and some challenges. The board package is a worthwhile effort, as it can help you secure your dream home.