Due to the results of the huge investors like Fannie Mae and Freddie Mac including the new stiffer restrictions by mortgage insurers for condos, being able to refinance your condos mortgage seems to be tougher than one might have thought.

Starting May 1st one of the biggest private mortgage insurers will not cover refinancing condos or new buyers of condos in countless ZIP code areas around the country that have seen a “decline” in mortgage credit and market conditions.

Even if the market was at its healthiest a condo buyer will need to put a minimum of 10 percent down payment. Mortgage insurers would also reject and condo applications if more than 30 percent of the owners of the condo are investors.

Those condo buyers that have a 20 percent down payment would not feel the affects of the mortgage insurers cutbacks. Mortgage insures will continue to refinance mortgages and continue to take applications for condo buyers that have at lest 10 percent.

Huge mortgage refinancing lenders have issued new guidelines that make it tougher for mortgage refinancing lenders to make loans available to buy condos or refinance mortgages.

To insure these guidelines for condo buying or refinancing are followed loan officers now need to take into account the number of condo owners are late on fees, their legal information, the amount of commercial space available and percentage of investors that are owners of condos.

Smaller lenders find these new guidelines for condo buying and mortgage refinancing unfair. The complain that smaller insures due not have the man power to carry the extra work to help mortgage refinancing and condo buying.

Loan officers are required before approving applications for mortgage refinancing or condo buyers to confirm that minimum 10 percent of the condos budget is available for “capital expenditures and deferred maintenance.” Some lenders feel that many loan officers would not approve applications for mortgage refinancing or condo buyers if they see that less than 10 percent of the “budget” is available in non physical items even if it includes insurance.

The bigger mortgage lenders say that although mortgage refinancing and condo buying applications are going to be more difficult because of all the extra paper work including the extra man power needed is going to be difficult it is necessary because of the decline in condo and homes around the country.

President of Family Choice Mortgage Corp a Connecticut based business has said that in these difficult times in the economy potential condo buyers and people who would like to have their mortgage refinanced many will hear that they can not be accepted as qualified buyers until all of the paper work is submitted and qualifies. Some condo buyers and people that want to have their mortgage refinanced even with good credit and equity may find the process difficult.

Some private mortgage lenders are now refusing to approve condo units in the same condo project after a certain percent to help restrict their exposure to any losses.

President Of Equitable Mortgage Corp., Bruce Calabrese has said that even he would have trouble refinancing his mortgages on his two condos even though he is in the business.

-M Petrone

Refinance FAQ & Advice

It is Vital that you will investigate your chosen home prior to buying simply because some properties has sustained damages, faulty water lines or wiring etc. so it is recommended to perform a infrastructure evaluation.

Buying a property should be well planned. A bad deal can impact your monetary status and haunt you for a long time.

2. Study the Vicinity – Analyze and compare a property to its neighboring properties in the vicinity. Each property market have their ranges of house prices, houses for sale London will range within a property value of £410,000 and should not deviate much throughout different areas in London. In United Kingdom property reports and studies implies that a diagonal line that runs across the country divides its Property Market in terms of Price and Location. The imaginary line starting with Bristol Channel all the way towards the Wash divides the Property Market into North and South. Northern Properties are generally cheaper than its Southern Counterparts.

Regarding other locations or other country property houses for sale, it is basically beneficial to purchase properties for sale in urban developing areas. A property from a metropolitan has higher market value than a countryside property. Land properties in a fast developing area are always good investments since they increase their market value proportional with the urban development.

Areas with untapped capability like for example beachfronts, caves, rock formation beautiful landscapes and potential tourists’ attractions are great property investments.

3. Communicate with your seller – Communication has never been a bad thing with regards to negotiations. It reaffirms common interests and makes clear any miscues and misconception. Having continuous and extensive talks will substantially assist in the negotiations of terms and bids. It is always free to ask – use it, it will help you a lot.

4. Contracts – Always read and inquire expert help when signing an agreement. They contain too much legal power; paying attention to it is a must.

If you have things bothering you, or something that you don’t understand about the contract then feel free to ask professional help. Always seek legal counsel before binding into a contract.

5. Public records, History, Written Documents and other Property Firm’s records are good Statistical Data – Friends, Locals and written documents will let you collect useful data which are very valuable when you buy properties. Facts such as trends in property value, historical past of fires and earthquakes will certainly are significant matter to your investment buy.

In case of understanding such bad history, you might need to take into account looking someplace else or maybe buy the property along with insurance.

6. Credit rating along with your Funds – Fiscal loans and mortgages and their rates are greatly affected by your credit score. Possessing a better credit rating vastly widens the options you can get when buying a property in sale

To bargain a favorable loan deal you need to have a good credit record and sustainable budget. To improve your credit score it is best to pay off your debt sooner for an immediate notice of your credit agencies. Doing such raises your credit score although noticeable increase in credit score will need a few weeks to months to appear. I suggest you delay your mortgage loan as much as you can handle until significant changes in your credit score occurs thus the mortgage will have reduced interest than before.

7. Aim any particular yet realistic target – a lot of deals on the market, you cannot possibly check all of them. Therefore set preliminary standards and targets to narrow down the list. If you aim a certain yet reachable target narrows down the list to what is relevant to your budget and house needs.

8. Determine the kind of loan that will work best for you – There are numerous choices to purchase a real estate. There are actually different alternatives you can avail on the property market such as mortgages, loans, property refinancing, lease options etc.

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Professional help is highly advised in determining your options to your property buy because the process and terms can be quite complicated.

Having professional help can help get better deals as well as avoid frauds and scam deals.

9. Patience – Patience goes far in finding deals and undertaking conversations. Never be aggravated from cancelled deals or be overly aggressive in taking deals & opportunities right out. Taking time and patience will surely net you a good deal.

10. Follow Practicality- Know your limits. Consider what particularly you will be searching for when investing in a property. For a family house take only what suits you, buy a house that fits your family size and requirements.

When buying real estate for investments try not to over gamble and take risky deals. Try to find practical deals like a property purchase from a stable economy or possibly a house purchase that bundles an insurance plan along with it etc. If possible buy properties which are well-maintained and needs no further repairs.

Perhaps, one of the most important factors that should be examined, when buying a D.C. condo, is cost. Are you on a budget? If you are on a budget, cost will likely play an important role in choosing a D.C. condo. You will want to make sure that you choose a condo that you can afford. To eliminate wasted time, by looking at condos that are financially out of your reach, you are advised to examine, ahead of time, how much money you can afford to spend on a D.C. condo. Doing so will not only help you find a D.C. condo, but it will help you find a D.C. condo that you can afford.

Size is another important factor that you will want to take into consideration, when looking to buy a D.C. condo. As you likely already know, D.C. condos come in all different sizes, shapes, and styles. It is not uncommon to find condos in the Washington D.C. area that have one bedroom, two bedrooms, three bedrooms, or even four bedrooms. When examining how much space you will need, it is important that you examine your living arrangements. Will you be living alone, with your romantic partner, or with your family? If so, you will need to keep this in mind, as you will want to make sure that you purchase a D.C. condo that is large enough to accommodate you and all of your needs.

Location is another important factor to examine. If you are interested in buying a D.C condo, there is a good chance that you work in the Washington D.C. area or else your children may go to a Washington D.C. school. Although you may not mind a long commute to work or to your children’s school, you may want to examine location. Available D.C. condos can be found all across the city. That is why it is advised that you first examine condo complexes that are located a relatively close distance away from your work or your children’s school. Of course, you don’t have to decide to buy one of those conveniently located condos, but it might be worth looking into.

In addition to cost, size, and location, it is also advised that you examine rules and restrictions. A large number of condo complexes have numerous rules and regulations that are enforced. While these rules and restrictions, should they exist, are likely to vary from D.C. condo complex to D.C. condo complex, there are common rules that are in place. One common restriction involves pets. While it is possible to find condo complexes that allow pets on the premises, it is not uncommon to find some bans or restrictions. If are you are looking for a D.C. condo complex that allows pets, you will want to keep this in mind when searching for a condo. If any rules or restrictions are imposed, it is important to remember that they are designed to keep you and all other condo owners happy.

The above mentioned factors are just a few of the factors that you will want to take into consideration, when looking to buy a D.C. condo. As soon as you have examined these factors and found a D.C. condo or multiple condos that you would like to buy, you are advised to schedule a showing. No matter how great a condo looks on paper or on your computer screen, you will want to see it first before you officially make your decision.

One of the greatest benefits to owning an Orlando condo is the multiple uses. For instance, a large number of Orlando condo owners choose to reside fulltime inside their condos, but other only use them when they regularly travel to the Orland area, whether that travel is for business or for pleasure. Should you choose to buy an Orlando condo, you can use it as however you see fit. Essentially, this means that whether you would like to live in your Orland condo year round or only on occasion, it is your right to do so.

Another one of the many benefits to owning an Orlando condo is the selection that you have to choose from. Orlando condos come in all different sizes, shapes, and styles. In fact, in the Orlando area, there are a large number of condo complexes, which each hold numerous condo units. Whether you are looking for a condo that has one bedroom or four of them, you should be able to find at least one condo in the Orlando area that can give you what you need.

In keeping with the above mentioned benefit of choice, you also have a choice when it comes to deciding where in Orlando you would like to buy a condo. As it was previously mentioned, condo complexes can be found all over the city of Orlando. If you are looking to live in Orlando fulltime, you may want to find an Orlando condo that is located close to your place of business. Should you only be interested in visiting Orlando while on a vacation or even if you are looking to retire in an Orlando condo, it may be a good idea to examine local activities or attractions that you would be interested in participating in or visiting. A conveniently located condo is one of the best ones to have.

Cost is another benefit to buying an Orlando condo. While many individuals consider the cost of condos, including Florida condos, to be quite high, it is important to remember what you are getting. It has been said that condos represent a combination of a house and an apartment. They have many of the rooms that a traditional home would have, but they are compact like many apartments are. For that reason, you will find that many Florida condo prices are consistent with the average selling prices of homes in the area. When compared to renting an Orlando apartment, you may very well find yourself saving money, overtime, with the purchase of an Orlando condo.

Isn’t it amazing that there are so many benefits to buying an Orlando condo. What is even more amazing is that the above mentioned benefits are just a few of the many that exist. If you are interested in buying a Florida condo, particularly an Orlando condo, it is advised that you do a little bit of research to first get your search started. When doing so, you will want to examine Condodomain.com. Condodomain.com is your one stop resource for buying a Florida condo, including a condo in Orlando.

One of the greatest benefits to owning an Boston condo is the multiple uses. For instance, a large number of Boston condo owners choose to reside fulltime inside their condos, but other only use them when they regularly travel to the Orland area, whether that travel is for business or for pleasure. Should you choose to buy an Boston condo, you can use it as however you see fit. Essentially, this means that whether you would like to live in your Orland condo year round or only on occasion, it is your right to do so.

Another one of the many benefits to owning an Boston condo is the selection that you have to choose from. Boston condos come in all different sizes, shapes, and styles. In fact, in the Boston area, there are a large number of condo complexes, which each hold numerous condo units. Whether you are looking for a condo that has one bedroom or four of them, you should be able to find at least one condo in the Boston area that can give you what you need.

In keeping with the above mentioned benefit of choice, you also have a choice when it comes to deciding where in Boston you would like to buy a condo. As it was previously mentioned, condo complexes can be found all over the city of Boston. If you are looking to live in Boston fulltime, you may want to find an Boston condo that is located close to your place of business. Should you only be interested in visiting Boston while on a vacation or even if you are looking to retire in an Boston condo, it may be a good idea to examine local activities or attractions that you would be interested in participating in or visiting. A conveniently located condo is one of the best ones to have.

Cost is another benefit to buying an Boston condo. While many individuals consider the cost of condos, including Boston condos, to be quite high, it is important to remember what you are getting. It has been said that condos represent a combination of a house and an apartment. They have many of the rooms that a traditional home would have, but they are compact like many apartments are. For that reason, you will find that many Boston condo prices are consistent with the average selling prices of homes in the area. When compared to renting an Boston apartment, you may very well find yourself saving money, overtime, with the purchase of an Boston condo.

Isn’t it amazing that there are so many benefits to buying an Boston condo. What is even more amazing is that the above mentioned benefits are just a few of the many that exist. If you are interested in buying a Boston condo, particularly an Boston condo, it is advised that you do a little bit of research to first get your search started. When doing so, you will want to examine Condodomain.com. Search our website for Boston Condos here.

1)      Start by getting pre-approved by your bank or a mortgage broker. Knowing what you can truly afford gives you a starting point and a price point to search within. After all, it would be very disappointing to find a home you love only to find out it is not within your financial means.

2)      Find a Realtor (Real Estate Sales Representative) you trust! This is very important as you will be sharing personal information about yourself with them. Talk to your Realtor about what you are and are not looking for in a property.

3)      Now the fun begins. Once you’ve been pre-approved for a mortgage and you’ve found your trusty realtor, your realtor will then begin showing you properties of interest.

4)      While on the showings, scrutinize each unit. Think about the location, building amenities, the potential future value, the unit layout and of course the price.

5)      Once you’ve found the unit you would like to purchase have you Realtor research what the unit is actually worth and carry out their due diligence.

6)       Now its time to make up the offer. Have your Realtor go through the offer with you. You may also want to have a lawyer review it.

7)      Your Realtor will then submit the offer to the Listing (Selling) Realtor who will then contact the seller to review the offer. The other party has a set time period, called the irrevocable date, to either sign back or accept the offer. Within this irrevocable time, the buyer is held to the agreement.  If the irrevocable date passes without contact from the seller, the deal dies and neither party is held to the agreement.

8)      Once the buyer and seller have come to an agreement regarding the price and conditions the deal is now either sold firm ( no conditions) or sold conditionally ( usually conditional upon arranging financing or lawyers review of the status certificate).  If sold conditionally, the buyer then has a certain time frame, as set out in the agreement of purchase and sale to waive the conditions. Once the conditions have been met, the buyer signs a waiver which then makes the deal firm.

9)      On occupancy is when the buyer and seller meet with their respective lawyers to exchange the property keys for payment. The title of the property is then switched over from the seller to the buyer and the buyer is then given entry and ownership to the property.

Buying real estate is an exciting process. It can also a stressful and complicated process so it’s important to hire a Realtor you trust. After all, buying real estate is one of the largest investments you will make. 

1)      Lawyer fees – Your lawyer will charge you for the closing fees and title insurance if you elect to purchase it.

2)      Adjustments – Depending on what is in the agreement of purchase and sale you may have to pay for property tax, hot water tank adjustments etc.

3)      Land Transfer Tax Fees- Buyers of real estate in Toronto must pay the Toronto Land transfer tax and the Ontario Land transfer tax (for purchases only). If you are a first time buyer, you will get a break on the tax.

4)      Moving expenses – Don’t forget about the costs of hiring movers and a moving truck, and if you are moving into a condo then you may have to pay a fee for booking the condo elevator.

5)      Services such as the TV, Phone, and Internet must be set up.

6)      Home insurance

Once the transaction has been completed, there are other expenses to consider as well. On top of your every day living expenses budget for the following:

1)      Monthly mortgage payments

2)      Annual property tax

3)      Monthly maintenance fees – monthly common expense plus reserve fund

4)      Utilities – Don’t forget about the monthly water, heat, hydro and central air bills. Some condos cover all or a portion of these.

When purchasing a resale condo unit there are no surprises; what you see is what you get. You know exactly what you are getting into as you can physically visit the unit, see what finishes have been used, know how the management is running the building, etc. Generally speaking, items such as window coverings, light fixtures and built-ins are left behind by the sellers which are a bonus. Another positive aspect of buying resale is that a buyer is able to visit multiple units in different locations before making a decision to see which one best suits their needs. The down side of resale is that you are not the first owner of the unit and some prep work of the unit may be required before move in.  

On the other hand, when purchasing a pre-construction condo unit, you are essentially buying an idea and not a tangible item as the condo doesn’t physically exist yet. Instead of visiting the unit, you visit the sales center where you purchase off of a floor plan where you must visualize the space you are purchasing. The nice thing about buying pre-construction is that you are the first owner and everything is brand spanking new.  By the time the builder has sold enough units to start construction and construction has been completed, it isn’t until years later that you are actually able to move in. If you are looking to move into a condo unit immediately or within a short time period, then resale is the way to go but if you are able to wait a few years and have a flexible timeline then pre-construction may just be what you are looking for.

The next thing to consider is motive. What is your reason for buying a condo unit? Is it to reside in or to flip? When buying a resale condo unit, you can potentially move in immediately whereas if you buy pre-construction you must be patient and flexible as the original occupancy date will most likely fluctuate. If it’s an investment that you are looking to get into then pre-construction may just earn you that extra cash you are looking for.   When buying pre-construction, you buy at today’s market price so depending on the market situation when you buy versus when you sell determines whether you make a profit or loss.

Finally one of the most important elements of buying a condo unit is the cost and if you can afford the financial obligation. In either situation, a down payment must be made. In resale, on average a 5% down payment is given as a deposit with the offer. Depending on what has been arranged with the bank, a further deposit is paid to the bank upon unit closing. This deposit amount can vary from 5% down to 100% down, in which case a mortgage would not be required. When you purchase a pre-construction unit however this flexibility is not allowed. The builder has strict deadlines when deposits must be made. Usually a deposit is made with the initial signing of the documents, another one upon closing and then a few others in between which usually totals about 25% down.

A condo can be a great investment and a great place to live whether you purchase resale or pre-construction. Choosing which route to take depends mostly on your urgency to move but also on your financial situation and your reason for buying. In either case take the time to determine which route makes the most sense for you.

Q. Can I choose my parking spot and locker location?

A. If you have a disability or have a medical condition and need preferential parking then advice the sales rep at the time of purchase and they will try to accommodate you as much as possible. If you do not have a special requirement, then parking and lockers are assigned on a random basis.

Q. Do I need to purchase insurance for my condo unit?

A. The building insurance is provided by the condominium but owners must have insurance on their personal property, contents and any improvements that may have occurred that are above the standard finishing’s of the condo.

Q. How do I book the elevator for move in?

A. Contact the property management for booking the elevator. Many times, owners will have access to an Intranet where they can book items such as the elevator or party room, obtain parking passes, etc.

Q. What does interim occupancy mean?

A. Many people don’t know this but when you buy pre construction, there is a period of time where you may have to pay a fee called an “occupany fee” to the builder. This monthly fee is paid to the builder until the building registers with the Land Registry Office. You are able to occupy the unit during this period but technically do not own it yet, until the date of closing.  This fee can be compared to rent as it does not go towards your mortgage and is based on the unpaid balance of the purchase price, estimated land taxes and estimated common expenses (maintenance fees).

Q. Are the Builder Agreement of Purchase and Sale documents standard?

A.  No, every builder has their own agreement which was prepared by their lawyer so it’s important to have your lawyer fully review the document. Make sure all details are in writing and never rely on verbal agreements.

Q. If I sign an Agreement of Purchase and Sale for a pre construction condo can I change my mind?

A. After signing the Agreement of Purchase and Sale, you have a 10 day cooling off period (don’t confuse this with buying resale real estate, this is only for pre construction). During this time, have your lawyer review the documents and obtain the necessary financial confirmation that you need. If you decide with in the 10 days that you do not want the unit anymore, you are able to cancel the agreement and get your deposit back – but this must all be in writing. Once the 10 days passes, you are bound to the agreement of purchase and sale.

Q. Can the condo builder or myself ever terminate the agreement of purchase and sale once it has been agreed to and the ten days has passed?

A. Once and agreement of purchase and sale has been signed, the price of the unit agreed to freezes. If however the agreement includes an “economic liability” date and a certain percentage of sales has not been achieved by a certain date, then the developer can cancel the condo project.

Q. When can a builder start construction on the new condo project?

A. It maybe months or even years before the builder can begin construction, depending on when you signed the agreement of purchase and sale. Before the builder is able to start construction, there must be a certain percentage of binding sales agreements so construction really depends on how quickly the project sells. A lot of the time, the estimated occupancy date set out by the builder at the beginning of the project is a very optimistic timeline.

One of the most important features to look for when considering a floor plan is the location of the windows in the unit. It is always more attractive to have windows in all the bedrooms and is a proven fact that natural light increases the resale value of the unit. Corner units typically have twice the amount of natural light which an extremely attractive feature for future buyers but beware of oddly shaped corner units.

One aspect that is often overlooked when choosing your unit is the actual location of the unit within the floor plan. A unit within close proximity to the elevators can prove to be very frustrating as noise levels tend to be high. This brings me to my next little piece of advice. Stay away from the garbage shoot! Many purchasers have been disappointed to learn that once they have moved into their condo they are constantly bothered by the sound of the garbage falling down the shoot. This has proven to be a larger problem for residents on lower floors especially when the garbage shoot runs behind their laundry room, which they typically do. Always ask your sales representative to show you the unit location within the entire floor plan.

When choosing your floor plan don’t forget to take into consideration the closet and storage space. Builders today are building taller condos however actual unit square footage is getting smaller. With smaller square footages, large closets and storage spaces come in handy, especially if owning a locker is not an option.

Being able to make good use of your space is extremely important when choosing your floor plan. This leads me to my next tip on choosing a functional layout. Even though pie shaped units or units with sharp angled walls have a dramatic architectural effect, they are extremely difficult to furnish and create a lot of wasted space. Evenly shaped rooms, such as squares or rectangles do not present this problem as they make furniture placement a lot easier and makes the space more useable.

Take into consideration the above mentioned tips when buying a pre-construction condo. The beauty of purchasing pre-construction is that you can choose the floor plan you like so why not choose smart?