For most people, a condo is the initial step toward full-fledged house ownership. Nevertheless, purchasing a condo isn’t the just like getting a house, bringing with this different considerations and issues. If you think like you’re ready to get the leap from leasing to owning and are thinking of buying a condo, listed here are some things you need to know first.
- Landing A Loan. Unfortunately for condominium buyers, lenders deal with condos a bit differently compared to typical single-family homes. The Federal Housing Management in particular has several regulations before it is going to back a loan on a condo unit. For example, at least 80 percent of the units in the building should be owner-occupied, means buildings that attract numerous investors or real estate speculators will probably be off-limits to you if you are looking to obtain an FHA-backed loan. The building by itself must also be on the FHA’s listing of approved condo buildings, this means you may have to pass on the perfect condominium if the building isn’t on the list. Customers can still get a loan from an exclusive loan company without government backing, however the price can be higher, with many loan companies needing a downpayment of 20 percent or more.
- What Are the Rules? With the number of people living in close proximity, condominium buildings may have a lot of rules to be able to keep the peace. Do they permit pets? Are you able to rent out your unit later on if you would like? Are there quiet hours? Are there rules regarding shared spaces like a yard or pool? Before you decide to move in, make sure you’regonna be able to live with the rules.
- What Are the Costs? For most buildings the condominium association levies costs to purchase common expenses for example insurance and also repairs that affect all of the residents. Whilst you’re likely to ask just how much the fees are, it’s equally important to understand what exactly they buy. A well-run condominium building are going to set aside a money for major structural maintenance or an emergency fund. You don’t wish to move into a condominium only to discover a few weeks later that the connection is broke and also can’t afford to pay for an urgent repair similar to a leaking roof. Ask the connection to show you where the money is going every month, how much money on hand it includes and whether you will discover any excellent liens against the association.
- Check out the Minutes. If the condominium association will take minutes at its meetings, ask to see them. This may provide you with a good idea of the culture of the building, permitting you to understand if you will discover any insufferable gadflies that drive the rest of the building crazy, or if the condo leadership is responsive to tenant issues. It can also provide you with an idea of the recent news in the building. You most likely don’t want to move into a building that’s presently associated with several contentious lawsuits, along with the minutes are the most effective place to discover this sort of information.
- Maintenance and Upkeep. Before buying a condo, you’ll want to know who handles the building. Would they hire somebody to clean common areas and also sustain the yard, or are tenants supposed to pitch in? A condominium building that is lax about maintenance may be aggravating to live in, however it may also hurt your resale value down the road,therefore make sure your condo takes maintenance seriously.
You’ll also would like to know exactly what you’re responsible for if something goes wrong. If a pipe breaks above you and destroys your living room area, are you on the hook for repairs? In lots of buildings the condo association’s responsibility stops at the midpoint between the walls of your unit, meaning whatever happens inside your unit is your job.