Getting a Condo Mortgage – Details You Need to Know
There are a lot of people who choose to purchase condominium units instead of detached homes because they feel that it will be more convenient for them. It can be convenient but it does not mean that getting a condominium unit is going to be easy. For example, have you thought about how you are going to get a condo mortgage?
The requirements that you need to submit to get a condo mortgage are a bit different from the requirements you have to submit if you are getting a loan for your home. Expect that the rates are going to be higher.
It will help if you already know the condominium you are going to buy. If you have not found the right place yet, you can check out The Well Condos. You may become pleasantly surprised with the amenities that you can find. The community is great as well. You will immediately feel at home if you would choose this condominium.
Regardless of the condominium that you would choose, these are some of the details about condo mortgages that you have to be familiar with:
- You are required to provide a larger down payment as compared to the mortgage you will get for a family home. You need to provide 25% total price of the unit for the down if you want to lower your rates. There are also some mortgage providers that will require you to provide 20% of the total price as the minimum. This can be too heavy on the pocket of most people.
- You need to be familiar with the association fees. Owning a condominium automatically means that you are part of the association. This means that you will be required to pay association fees. The fees can vary depending on the condo that you choose. Some would be very small but there are also some that are rather high. It would depend on the things that your condo will provide. For example, the association fees may cover maintenance fees for your air conditioning unit and so much more.
- Make sure that the condominium, the whole property, is qualified to get a condo mortgage. Owning a condominium unit means that you are sharing it with all of the other condo owners. It is up to those who have put up the building to make sure that it is qualified for the mortgage. You will know about this immediately.
- Expect that the rates are going to be higher. No matter how much you are going to place for your down payment, the rates may still be higher compared to what you will pay if you have chosen to live in a single-detached home. You can always consult and know the fees first just to be sure.
There are some condominium owners who say that they have gotten their condo units faster when they paid in cash. In the end, it will still depend on what you think will be less stressful for you.