Qualifying the Property
Your lender will look at many of the same kinds of borrower qualifications for loans secured by condos as it does for loans secured by detached homes. It is critical for your lender to know that you can repay the loan without undue hardship to you or risk of default on your mortgage.
But with condos there are a few more things to know. To make sure your condo qualifies for the most favorable loan financing, Your lender may evaluate several factors designed to assess the financial and governance strength of the condo community or building you are considering.
Remember, you’re not just buying a home; you’re buying into a community. Take the time to look around, to learn, and to ask the right questions.
You’ll want to evaluate the condo carefully before finalizing your purchase offer. You’ll want to know:
- Are there any special assessments (such as for capital improvements to the condo property) that will affect your cost to own the condo unit, or the building’s value, in the long term?
- Are there any major lawsuits pending against the condo association or developer that could limit your ability to obtain financing to purchase the condo? This is a question to discuss with your lender.