What To Expect Of The Condo Loan Process
If you are considering a condo purchase and are interested in the home loan process
, you may have already discovered that home loans for San Antonio condos and Houston condos are decidedly different than mortgages for single-family dwellings.In fact, there are several, quite unique, considerations when speaking of home loans for San Antonio condos. The main difference between a single-family dwelling and a condo, in the eyes of the lender, is that a condo is actually a purchase that involves sharing ownership of certain parts of a building or neighborhood.
The lending process for San Antonio condos differs because the value of the building or community can weigh heavy on the value of your condominium home. Heres what to consider regarding home loans for San Antonio condos:
The lender will likely take quite a few considerations into account when determining your eligibility for securing a mortgage for a condominium residence, including: the percentage of the completed development if it is a new condominium building; the percentage of units that have been sold in the development; the percentage of units owned by investors; whether the project has approval by Fannie Mae and VHA; and the requirements set forth by the condominium complexs homeowners association. Whew! Sounds quite complex, doesnt it? Thats because, in short, lenders are no longer taking unnecessary chances when it comes to condo home loans after the condo surge and subsequent bust of the last few years.
Consider the area in which you are buying the condominium. Some areas have managed to thrive, even during the downturn in the market, while other areas are still struggling with an abundance of foreclosures. In short, make it a point to research the building or community to see how many properties are in foreclosure or for sale. This number will play a large part in the banks decision-making process. Luckily, San Antonio condos have fared much better than many other parts of the country so, although the issue of foreclosures still remains a problem, it is not as dire as it is in other parts of the country.
Because of the challenging home loan process associated with San Antonio condos, it is important to find a lender who considers various types of occupancy, including primary residences, second homes and investment properties. You may also want to identify lenders who consider both conforming and non-conforming loan products, as well those who consider providing loans for buyer upgrades.
If you are buying into a new condo complex, consider a lender who offers programs that provide you with protection from rising interest rates during the construction or conversion process. In other words, look for a lender who will be able to lock in an interest rate at no additional cost. In addition, look for a lender who will permit a float down option, which means that you have the opportunity (usually just one time) to change your loan to reflect lower interest rates.
by: Richard s