As a realtor you never want to disappoint your client and there are times when things are completely out of your control. Every condo association has rules and some of those rules can have unforeseen consequences.
What to look for
- Is the property pending litigation
- Are there any outstanding construction defects
- Does the condo need a full review
- Is the building properly insured
- Are there any outstanding HOA delinquencies
Since buying a condo can be a very complicated transaction you should consider Gracie Morrow Mortgage Group who specialize in Condo's. We can guide you through the condo association documents, including the association by-laws, recent regulations and budget, to help uncover any issues that may negatively impact your lifestyle.
Research The Association Management Company
In addition to working with GMMG, you should do your own digging into the association management company. Find out if the condo association has been involved in any lawsuits or experienced frequent delinquencies. Also, meet the association president, board members and current residents if you can.
What is the difference between a "Warrantable" vs" Non-Warrantable" Condo
A warrantable condo is one that is eligible for a conventional loan, by virtue of following rules set out by Fannie Mae and Freddie Mac, which ensure they purchase condos in financially sound communities. Meanwhile, a non-warrantable condo doesn’t follow Fannie and Freddie’s rules, which means you may have a slimmer chance of being approved for a mortgage.
To find out if it’s warrantable, check to see if the condo you’re considering shows up on approved lists, such as the one published by the Federal Housing Administration (FHA) or U.S. Department of Veterans Affairs (VA).
Header image credit: pexels-tomasz-ganclerz
