The fact you are reading this article means you are interested in jumping into the world of real estate to buy a condo. It is a good idea to understand the market before you can start buying the condominium. Buying a condo is not that complicated.When, you are ready to buy, sell or lease the property of your dreams in Philadelphia, call Maxwell Realty Company, Inc. to begin your luxury experience and create the DREAMS of your future.
Knowing you want to buy a condo
The process of buying a condo is different from that of buying a single-family home. When you buy a condo, you are buying an apartment and also the common areas in the building with the rest of the owners. You don’t have control over the outside of the property like you would a single-family house. The inside is yours and you can do whatever you want in it, provided you don’t knock down loadbearing walls or break the rules and bylaws set by the association. You should abide by the rules.
The advantage of getting a condo is the fact that amenities and some items are taken care of. You don’t have to worry about replacing the roof, landscaping, or painting the outside of your house. The association takes care of such things. It is important to know more about the things the association is going to take care of and what you can do.
Getting preapproved for a loan
You need to get a home loan when buying a condo unless you are paying with cash, which is something many buyers do. The loan is the same as the single-family loan, but you will have to let the lender known you are interested in buying a condo or townhouse style property. Getting preapproved for this type of loan will be a little different because it doesn’t use the prequalification calculate you can find on any real estate websites.
Being preapproved will mean having to sit down with the lender then discussing your income, assets and liabilities and the debt you might be having. This is used in determining the best price for you, which is something you will be able to afford. You should not use over 30-35% of your income paying for housing. This will include principal, interest, condominium association fees, taxes, and homeowner’s insurance. Lenders have the own way of doing the calculation to determine the amount you can afford then give you the number. Get preapproved before checking out condos for sale because you can easily end up disappointed and frustrated.
Use a buyer’s agent
Getting a buyer’s agent who is going to facilitate between the buyer and seller is a good idea. A listing agent is not the best option because you might not get the best deal. When you have your own agent, they are solely working for you and will get you the best deal.
Look for a condo
Once you know what you can afford, you need to look at the different options in the market. You should make sure you know what you are looking for. A buyer’s agent will help you with this process. If you don’t find what you are looking for, you can ask the agent to inform you when they find one.
Making an offer
Once you have a condo you like, the next step is making an offer. There may be negotiations back and forth. The seller can counter your offer with a different price or terms, but the money is going to deposit when you have a mutual agreement.
Getting home inspection
Once you have agreed with the seller, you need to set up a home inspection. Just because it is a condo doesn’t mean neglecting this important part of the process.
Pending to closing
Once you have the inspection report, the transaction becomes pending. This is where the final lending is completed, finalizing the documents and collecting paperwork.