The initial step would be to determine how much you can afford to spend. For most of the people, they would probably need to take out a mortgage. Unless they have saved enough to buy your home in cash.
Since condominiums have shared ownership, they are regarded as riskier than single-family residences. That’s why being pre-approved for a loan for a condo entail presenting your income, assets, liabilities, and other vital financial information to your lender in order for them to determine how much of a loan you will need.
Points to keep in mind when you are looking for a Condominium
● Employ an Agent:
If you’re going to use an agent, make very sure that you conduct some research on them, such as confirming their license credentials and asking for their references and testimonials. There’s nothing wrong with reaching out to prior customers to learn about their experiences. Most import is to make sure that agent is experienced in the buying and selling of Condominiums. The process of buying a Condominium is much different than the acquisition of any other type of property.
● Make a compelling offer:
Don’t be afraid to bargain. Most sellers establish a high cost, expecting that buyers will try to negotiate it down. To boost your chances of a successful negotiation, check into the typical cost of the property in the region, how long the property has been on the market, and whether the seller is aiming for a speedy sale.
● Apply for a condo loan:
Apply for a condo loan: Once you’ve determined your price point. Not only do you as the borrower, need to be approved for a loan, but your future condo seller or HOA may also require approval, and not every Complex will meet an FHA (Federal Housing Association) loan.
Have a meeting with the condo board (HOA):
HOA and condos go together, so you can’t have one without the other. Every condo has a Homeowner’s Association (HOA), where each resident pays a monthly fee. There are imposed rules, such as noise levels in an area, or the size of dogs allowed in your unit. After you find your perfect condo, you’ll need to be approved by the HOA.
● Get your home inspection:
The home inspector will check the plumbing, wiring, and the structure of the unit and then give you a report on the property’s condition and will let you know if it needs any repairs. Once you have this report, you can then negotiate with the seller whether these repairs or replacements are included in the total cost
● Finalize it and make sure to read all the documents:
During this last stage, your condo loan will be finalized, and you require the necessary paperwork for the final signing. A third party will manage the deal until both parties have agreed on the conditions of the contract, including your closing date.
Request a copy of the HOA Finances and By-Laws as well as a copy of all the rules and regulations. Have your accountant review the finances to make sure that you will not be imposed on with any special assessment and have your attorney review the By-Laws to ensure that the rules will allow you to live in peace.
Whether as an investor, a vacationer, or a year-round resident— always do your due diligence. This is important as real estate provides you with many areas where some are in your budget, or some are out of your budget. Condos are one of them, there are many which are better than others and some are worse than others. But in the end, it all depends on your budget, your desired lifestyle and the quality of life that you are seeking.
Daniel Borrero, Jr.
Real Estate Investor since 1989