A lot goes into buying a condo, or any other piece of property for that matter. First, there’s figuring out what you can afford and when you would like to move in. Then, there’s choosing a realtor to help narrow down your search. Finally, with each condo you see, you need to know what questions to ask. So, as you try to find the right place that best suits your needs, be sure to keep these seven tips in the back of your mind before making an offer.
1. Get Pre-Approved for a MortgageGetting pre-approved for a mortgage loan should be done months before you start looking at properties. This way, you will have time to re-apply, just in case you did not meet the requirements the first time around. Nothing is worse than finding the perfect condo and having it snatched away by another buyer because you didn’t make an offer quick enough due to your pending pre-approval.
By not establishing a realistic budget, you’ll likely waste time inquiring about condos that you cannot afford, which could set back your search by months. Start the home-buying experience off on the right foot by only looking at properties within your price range. Then, you won’t get discouraged by falling in love with a condo that is twice what you can actually pay for. This is where getting pre-approved comes into play. By taking the time to apply for pre-approval and speaking with a mortgage loan originator, you will easily be able to determine your budget.
It’s always smart to write down everything that you’re looking for in a condo, just so you don’t forget anything important. For example, if you have a dog, then a building that isn’t pet-friendly should not be considered. But try not to automatically reject a property that doesn’t meet every single item on your checklist. You may really want to find a building that has an indoor pool, but perhaps the only places available don’t allow pets. Compromise is crucial. Know what’s negotiable and what isn’t.
If you are not moving too far away from your current place, then you may not have to do much research to learn more about the neighborhood you’re interested in. Even so, that doesn’t mean you are fully aware of its real estate market. Though some people prefer to purchase properties on their own, but working with a realtor helps you find condos for sale that you wouldn’t have otherwise known about and can get you the best deal on a place as well.
Make sure you ask whether or not a condo is considered warrantable or non-warrantable, because that can affect where you get a mortgage. A non-warrantable condo is not approved by Fannie Mae or Freddie Mac, so some mortgage lenders do not approve loans to buyers who are interested in this type of property. If you do want to purchase a non-warrantable condo, the rest of the home-buying process will be much easier if you work with a mortgage lender who would grant you a loan.
The amount that condo-owners pay in fees can vary, so this should be one of the first questions you ask when you’re looking at a particular property. Knowing what you will have to pay each month, aside from your mortgage, can help you choose the right place. You may be choosing between two condos and the fees could be the deciding factor.
As you visit different condos, notice how well the entire building is maintained, not just the individual unit you’re interested in. Do you feel safe and secure? Also, check out what the residents are like because they will be your future neighbors. Let’s say you really want to live in a building where there are other people your age. Remember this preference when you’re visiting. If you like a place, but then realize no one there is even remotely close to your age, you will have to decide if that place is right for you.