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.

Share on Facebook

If you’re thinking of buying a condo you might want to check this out. PS..grab a beverage, it’s a LONG one!

You Must Know

In my personal opinion, buying a condo is HARDER than buying a single family home.  The details are endless and you need to be prepared.

Let’s Dig In: The Questions

How many units are in the building?

Is the building large with so many tenants coming and going that you’ll get lost in the shuffle?

Is there a building manager? What is he/she responsible for? Do they live on site?

How much are the association dues?

A MUST know…without a doubt. You have a budget for your mortgage. If the price seems right, but the dues are too high, you’ve gone overboard. It’s in your best interest to review dues before you see the unit. Don’t waste your time.

What do the dues cover? Is there a “repair fund”?

If the dues seem high, take a step back and see what they cover. Some will cover all utilities, cable, and internet. Do your homework and crunch the numbers to see if they work for you.

How is the HOA run?

Each Homeowner’s Association has their own set of rules and guidelines. Be sure to see how things come together

Is parking included?

Many condominiums do NOT come with parking, or parking costs more. Even if the listing online says there is parking, double check with your Realtor.

Where do I take out the garbage?

Seems silly, but do you have to lug your garbage a few miles, or just down the hall? Hmmm…..

Can I see the covenants, financials, and history of the dues?

YES! Your Realtor should request these before you make your offer.  Make sure you see and review all of these documents. They hold the answers to many questions you might have about where your dues are going and what the future of the condo might be.

Will my furniture fit?

Another question that might seem silly right now…but how are you going to get that baby grand piano up the stairs or elevator? (Yes, this is a real scenario…)

Can these units be rented out? How many units are owner occupied vs. renter occupied?

Can I rent out my extra parking stall?

What is the history of resale of these units?

Not everyone gets to stay put for more than a few years at a time. If your job or life might take you elsewhere, find out the history of how these units have sold.

Does each unit have laundry?

If laundry is not in the unit, is it included in dues or do I have to pay?

Does each unit control their own heat? AC?

What kind of privacy can I expect?

Oh boy…I’ve been waiting to add this piece. @mitchgroup on Twitter gave me this one. You should ask: “can i get a refund if the guy upstairs is a tap dancing insomniac who likes rap music?” booom booom clickety clack giggity! (If you appreciate his humor…follow him here)

What repairs/updates have been made to the building in the last 5 years?

Get a handle on what’s been done. If the roof is 30 years old…you might expect an increase in dues.

Are there any current or pending special assessments on the property?

Are pets allowed and are there limits?

Without a doubt, this is the number 1 question I get at a condo open house. Kudos..if Fifi or Sparky can’t stay, then you should go.

There is also info that your lender will need to know when you buy a condo. Tomorrow will be part two featuring advice for condo buyers from Tyler Osby of Four Legacies Mortgage.

Wow…a lot of info. As always, we welcome your input in the comments below…

Have more questions about 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.

photo credit: romanlilly

Share on Facebook