Home Buying in 10017>Question Details

Lpaige, Home Buyer in 10027

What goes into an official offer document? Does it include my financial assets?

Asked by Lpaige, 10027 Thu Apr 8, 2010

I'm issuing an official offer today or tomorrow. I'm skittish. This is my first place. My agent asked for my income, liquid assets, and annual debts. I've already been pre-approved by a few banks. Is this necessary?

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Answers

5
If it is a coop purchase the seller or their agent may ask for a signed (REBNY) financial statement. A pre-approval from a bank is not enough to purchase in 10017. Coops and many condos will require documentation of income and assets, along with reference letters, employment verification letter, tax returns etc.

Good Luck!
0 votes Thank Flag Link Sun Apr 17, 2011
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
It depends upon one's style for making offers. Some make verbal offers (followed up by written ones). I prefer to use a LOI (possibly with a verbal one), and follow it up with the P&S eventually.
0 votes Thank Flag Link Wed Apr 14, 2010
Yes, it is absolutely necessary to show a seller you have the income to purchase and live there. Yes, it is necessary to show your liquid assets as the board (coop or condo) will want to know you can afford the downpayment and have adequate post-closing liquidity. Yes, it is necessary to show your liabilities as your debt to income ratio becomes an important issue to make sure you can continue to afford your living space.

You've been posting for a while now. Surely you know by now that financial disclosure is an absolute requirement when trying to purchase. In short yes, it is necessary.
0 votes Thank Flag Link Tue Apr 13, 2010
Lpaige,

Gerard is absolutely right.

It's a common practice for a buyer to disclose their financial information. It slightly differs on an all cash deal where letters from banks and accountants may work. But in your case it's encouraged to include a filled out financial form along with a pre approval letter from your bank or mortgage broker.

The purpose of a financial statement and supporting documents is as follows. The seller broker or seller can see on paper if you have enough to meet all the requirements. Some buildings won't allow your LTV or loan to value ratio to go above 25-28%. Pre-approval letter and your mortgage broker didn't qualify you under such conditions unless you discussed this specific building and price. It's for the sellers piece of mind and it's also good for you to know if you can or cannot purchase in a building. All this your broker should have went over with you.

Good luck, don't be afraid and you an have everythign shredded after the deal is closed.
0 votes Thank Flag Link Thu Apr 8, 2010
The stronger your offer - including documentation supporting your approval - the more credence the seller may give your offer.

Your choice - Do you want the home? Follow your agents advice.

Good Luck!

Gerry Dunn
Associate Broker
Serving Maryland, DC and Northern Virginia
0 votes Thank Flag Link Thu Apr 8, 2010
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