Things to consider before buying a condo
Tuesday Jan 25th, 2022
Purchasing a condo is a major and complex decision. The move can have lasting implications on a buyer and requires you to think and plan so that you don’t end up regretting your decision later. If you have no experience of purchasing any property, then the chances are that you could be scammed while trying to purchase a property. This is why you need to study the market condition, the rates in the location you are planning to buy a condo, and several other factors so that your purchase fetches you the best return on investment.
Following precautionary measures will ensure that you don’t regret the decision you have made. Take a bit of advice from an expert who is experienced in this process. Before purchasing a condo, there are a few things you need to know and plan out the entire process.
Preparing your budget
While purchasing a condo or any other property, the first thing you need to finalize is your budget. Being aware of your budget will help you identify the size of the loan you need to take to gather the funds required for purchasing the condo.
Choose the right location
Once you have decided on your budget, you need to narrow down the locations in which you can afford a condo. It is vital to factor in the areas you spend time the most such as your office, kids' school, or any other important place that can reduce the amount of time you spend transporting from your future home. Once you have decided on the location, it is important to study the neighborhood, the availability of essential services nearby, and the safety aspect. Also, you need to check if the condo complies with all the building regulations laid down by the regulatory bodies.
Pre-qualifying for a mortgage
Before communicating with a homeowner or a real estate agent, it would be a great idea to get pre-qualified for a mortgage loan first. Pre-qualifying would ensure that the lender finds you capable of purchasing the property and would also show the sellers that you are serious about purchasing the condo and can also finance it. Pre-qualifying would also help you determine what kind of loan you need to take.
Know your options
While purchasing a condo, you are presented with two main options: cash or a loan. Loans are quite common. You could apply for a conventional loan that requires a 5-20 percent down payment or choose a portfolio loan that requires you to pay a higher down payment and carries a higher interest rate.
Before deciding which loan you need to opt for, it would be best to consult a mortgage broker or an expert in the financial institution you intend to seek the loan from. No matter what the case is, you need to do plenty of research before proceeding with purchasing the condo. This will ensure that you are prepared for the investment and the entire process would be smooth and hassle-free.