Thinking of buying a condo? Here are some things to be aware of.

For some people for what ever reason a condominium is preferable to a house. There are pros and cons to both houses and condos. If you are in the market for a condo instead of a house there are some things you should be aware of that will help make the experience a good one.

With so many condominium properties plagued by foreclosures and delinquencies, buyers need to do their homework if they don’t want to watch their dream condo turn into a nightmare,

First of all you want to make sure of the community. The community should be stable and well run.

Some of these deals on condos are tempting, but buyers need to think of purchasing a condo as signing a business agreement with all others who own in the project they are buying into as with any other business venture, learn how the place is managed and inquire about its financial stability.

It is not thought of buy many condo buyers but you should ask for a ask for a copy of the association’s budget. The association is not likely to give buyers a copy of the budget, but the seller — as an owner — can request a copy and provide it to the potential buyer. The most important parts of that budget include the total amount of outstanding debt owed to the association and the percentage of owners who are not paying their dues.

Buyers have little chances of getting a mortgage to buy a unit in a building with a high percentage of owners that are delinquent on dues. Fannie Mae, Freddie Mac and the Federal Housing Administration, which buy or insure most mortgages, do not approve condos with delinquency rates higher than 15 percent. Units in buildings that don’t meet that requirement are not eligible for financing backed by the three agencies, making it extremely challenging for a buyer to obtain a mortgage to buy the unit or an owner to refinance a unit in those buildings.

As with most things the more research you do, the better off you’ll be in the end. Any qualified real estate professional can help you with this.

  • Share

Comments are closed.