Buying a condo in Boston, MA with a mortgage? Prepare yourself for this process!
Many buyers are overwhelmed by the process and wonder why so much information is required. Other than your personal financial information, a condominium purchase has many other elements. Use the checklist below, and you can have an easy home buying process.
1. Closing date. Tell your mortgage officer your expected closing date as soon as possible so your rate can be locked, even before the application is submitted.
2. Application. Your mortgage application to buy a condo or any other property is due shortly after the Purchase and Sale. In our Boston forms, we expect an application within two days of signing purchase and sale.
3. Purchase and Sale, (P&S). In some states it’s called the contract. P&S is the agreement between seller and buyer, super-ceding the offer. Your loan officer must have a copy of this in order to have a “complete” mortgage application. This include copies of the checks for P&S and offer deposits.
4. Condominium Documents. The mortgage company will look through the condo docs, Most of them are standard with minor changes. Also provide the association budget and any important minutes or notices of assessments.
5. Master Insurance Certificate. The mortgage company wants to be on the insurance company’s coverage. Specific language has to be written into the insurance policy covering the condominium building.
6. Condo Questionnaire. A questionnaire asking about the financial health of the association, owner occupancy and phases of completion. Owner occupancy is a vital indicator of the quality of the condominium complex. Phases of completion is usually a moot point in Boston.
7. Appraisal. Appraisals can take a few weeks so ensure it is scheduled as early as possible, it should be booked as soon as your application is in. Nothing holds up the process of mortgage approval more than late appraisals.
Why does the mortgage company need all of this? After all, the bank is buying the property with you. This information is a way for them to assess if the property is worth the price and the likelihood of it foreclosing.
The mortgage process can be overwhelming, which is another reason hiring a buyers agent is so important. Hire someone who understands not only the properties but how lending works. If you don’t meet the mortgage requirements for a condominium in Boston, you won’t have one.
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