There are many steps to financing a condo purchase when times are good. In today’s market when things are not so hot, there are even more hoops to jump through. Just as you want a highly competent medical specialist and a world-renowned hospital when you are sick, you need a highly competent mortgage broker and a mortgage company with realistic underwriting guidelines in challenging real estate markets.
What prompted this post is a closing that took place yesterday…over a month after the original closing date. The reason was the mortgage company…and not necessarily the mortgage agent! By the way, the buyers put 20% down, had exceptional credit scores, and both husband and wife have well-paying jobs!
Three Steps to Stress-Free Condo Financing
1. Assuming that you have secured the services of a competent real estate agent, seek the agent’s guidance in selecting a mortgage provider. An experienced agent will know which companies are “condo friendly” and which agents have the best track records.
2. Use a mortgage provider that has provided mortgages in the condo complex where you buying. On Cape Cod, some of the local financial institutions are better bets than those with off-Cape underwriters.
3. Use a local mortgage agent who is familiar with the area and the condo complex. Since they have already jumped through hoops for previous clients, they will know how to guide you through them for your closing.
Maybe “stress-free” is a bit of an overstatement, but if you follow these three steps, your purchase will be a lot less stressful.