Whether you are a first time home buyer or you are a seasoned home buyer, buying a condominium can be a different experience. Here is what you need to know and a few tips on how to buy a condo…
1. Is it FHA approved?
Do you know if the condo you are looking to buy is FHA approved? If not, talk to a real estate professional to get the details. If a condo complex is not FHA approved, this means it does not meet FHA guidelines and you will not be able to use an FHA loan to purchase the condo. If you are going to be using an FHA loan, this is very important to know up front. You don’t want to fall in love with a condo only to find out that you can not purchase it because of this restriction.
Find out if a condo complex is FHA approved here.
2. Are you an investor?
Sometimes condos are purchased first as a primary residence and then it is turned into an investment property where it is rented out. Are you thinking of doing this? If so, you need to know if you can. Some condo’s have restrictions on how many can be used as an investment property. Make sure to do the research to know if you can turn your condo into an investment property.
3. Condo Association fees include…
Every condo complex has a condo association that charges some kind of fee. What that fee includes and how much that fee is will vary. Make sure you know what the fee includes so you know what you are responsible for. If your fee includes water, then you need to mark that in your budget.
4. Mortgage Research
It is very important to do your research when it comes to choosing the right loan. Make sure you talk to a lender, get all the facts, and choose a price range that you feel comfortable with. Don’t forget to factor in Condo Association fees within your budget.
5. Market Analysis
Last but certainly not least, make sure your real estate agent pulls a market analysis for you. After you choose a condo and are ready to make an offer, your real estate agent will present you with a comparative market analysis. This report will show you what other, similar condos in the area are selling for so you can get a better idea of what to offer and what the condo is worth. This report is very important since it will help you not to overpay and also to know if you are getting a great deal.
These 5 tips are basics steps that will get you closer to buying the condo of your dreams! Make sure to talk to a real estate professional to get the details, info, and help you need to successfully purchase your condo.