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.

How about a simple checklist to get you started…

1) MEET WITH A LENDER – A lender will sit down with you and go through your current finances.  They are highly qualified to help you understand what your financial obligation of owning a home would be. Together you will find a price point that you are comfortable spending.

There are many, many lenders that you can choose from, and YES, some are better than others.  You want to find a lender that will watch out for you, and who has your best interest in mind.  If you need a refferal, please let me know.  I’m happy to refer you to a reputable lender in this area.

2) MEET WITH YOUR REAL ESTATE AGENT- Be sure that the Realtor you choose is someone that you trust.  You need someone who understands that this is a VERY important purchase for you.  They should know the neighborhoods of your desired area, and if they don’t they should refer you to someone who does. 

Together, you and your Realtor will:

-locate neighborhoods that will fit your needs

-determine what style of home you are looking for (townhome, single family, etc.)

-go on “tours” of homes to see what your likes and dislikes are (be sure to TELL your agent…it’s amazing how many people keep to themselves when touring homes).

-find “THE ONE” and write your first offer!

3) WRITING YOUR OFFER! – Now things are getting exciting!  You’ve find your dream home, you want to buy it…and you’re ready to write your offer.  Your Realtor should do an analysis on the home to be sure that you are not overspending.  This will also help to see what the market in that particular neighborhood has been doing lately and can help determine your asking price.  If your Realtor hasn’t done this…ask them to.  It’s their job!

This should get your started.  As you go through this process you see that there is much more to learn, and if you have a patient Realtor, they’ll guide you through the process carefully. If you are feeling like things are going too fast, or you are uncomfortable, just say so!  If you like to contact me with any questions, feel free to text, call, or email me.

Have More Questions? There are definitely more answers…

asalmon@firstrealtyhomes.com

As always, my blog is filled with my own opinions and are in no way the opinions of Prudential First Realty.