Preapproval for coop

which banks are best for coops?

I am looking to get a preapproval from the bank for a coop.

Preapproval for coop

We used Chase for our coop and are now using them for our home, very easy to work with

Re: Preapproval for coop

I sell a lot of co-ops and in my most recent sales, buyers have used Chase, Citi, Continental, and U.S. Mortgage as lenders, and things have gone smoothly.

Most banks don't like lending on co-op purchases (but they do anyway). They are really strict with appraisals. I had one recent co-op sale where it was my listing, and the buyer was using Chase. They had an appraisal done, and then before the results came in, switched to another bank (for reasons related to rate and closing costs, not the appraisal). But it turns out Chase's appraisal came in low, and the second bank's appraisal came in for value. The appraiser who was working for Chase said that Chase has become very strict with co-op appraisals and allows very little room for the appraiser's discretion. I also think Chase will only give you a prequalification letter, not a full preapproval, until you find a specific property of interest. But that may have changed.

I am sure you already know this, but you need to qualify for a conventional loan to get a co-op (FHA does not lend on co-ops). Also, many co-ops have minimum down payment requirements (usually 10% or 20%), although that is not the case with all of them.

Also, keep in mind that you can really get a preapproval from any bank, and later shop around for the "best" bank to use for a co-op purchase. You are not bound to the first bank that preapproves you.

Good luck!

Re: Preapproval for coop

i walked into chase and got a pre-qual in under 15 min.
i got my loan through continental

Re: Preapproval for coop

if you have a particular development in mind, some have lists of mortgage companies that their buyers have had success with. Our coop has HSBC, Chase and CITI on the list

Re: Preapproval for coop

Thank you for all your replies.

I contacted Continental but they didn't have the coop development on the list. So they needed the board's financials. I asked the realtor to ask the board for this, but they wanted a fee (board requested a fee).

The realtor mentioned Chase was very difficult now a days *as Christine mentioned*.

Wells Fargo, HSBC, and TD Bank were some that were mentioned to us by the realtor.

We have an FHA preapproval but now we want to look for a coop. We have the 20% downpayment, now we are just looking at the developments.

Thank you!