Buyer's Guide

STEP 2:

GET PRE-QUALIFIED

Before beginning your search, your first step is to get pre-approved for a mortgage loan (unless you will be paying in cash for the full price of your home).

Your Compass Agent can connect you to a mortgage broker. Based on your income and credit history, the mortgage broker will determine how much the bank will lend you, which will help you determine the price range for your search.

STEP 4:

NEGOTIATE

Reach an agreement with the seller on price and terms. Once you have seen a home you like, your Compass agent can submit an offer on your behalf, which is a non-binding agreement to pay a certain price for the home. If your offer is lower than the list price, the seller will likely return with a “counter offer” price, which you can choose to accept, reject, or make another offer. Your agent will provide advice on pricing throughout.

STEP 6:

GO TO CONTRACT

Sign the contract and put down a deposit. The deposit is normally 10% of the purchase price.

STEP 8:

PREPARE YOUR BOARD PACKAGE

(If you are purchasing a townhouse, skip ahead to Step 10.) Co-ops are run by a board of directors, who will require a board package in order for you to purchase an apartment. A board package generally consists of financial documents including tax returns, bank statements, mortgage commitment from your bank, and letters of reference. After reviewing your package, the board will set an interview date. Your Compass Agent will help prepare your board package as well as prepare you for your interview. While condos do not generally require board packages or interviews, you will need to present a purchase application that shows you are financially qualified to purchase the apartment.