Following up from yesterday’s post titled FAQ: What Questions Should I Ask When Buying A Condo? Part 2 today includes what your lender might want to know.

Thanks to Tyler Osby, of Four Legacies Mortgage, for his input on buying a condo.

If you are buying a condo that is new construction or that is in a newer community you should know:

With condos, it’s always important to lenders what the entire project looks like.  The reasons they take consideration into the entire project is because it impacts resale value (so, it’s a good thing they care about it).

Here are some examples of questions that a mortgage lender will ask about a condo project:

Which phase of development is this property located in?
How many of these units are sold in this project?
How many units are completed?
Is this project a conversion? (from apartments to condos)
Who has voting control on the Board of Directors? (Builder or association dues)
Does the project contain any rental units?  If so, how many? (this matters BIG)
How many unit owners are delinquent more than 30 days on dues? (this also matters BIG)
Total Sales Information: ( __Total # of completed unites in project, __ Total number of units conveyed, __ Total number of units under contract, __ Total number of units conveyed/under contract investors).

Long story short, each project is looked at individually before getting ‘approval’.  Some condo projects have their project already approved through FHA and Fannie Mae, others don’t.

Just know going into these condo purchases that they could get into trouble getting approved with an unusual condo questionnaire.

If you’d like to connect with Tyler, you can find him online at http://wealthwithmortgage.com or follow him on Twitter @tylerosby.

Have more questions about Living in Des Moines? There are definitely more answers.

Feel free to connect with me via Facebook, Twitter, Text, Email, or by cell. I’m happy to help.