In my blog, I’m Pre-Approved … What’s the Rush?, I talked about the misconception of a pre-approval. Today, I’d like to advise you on two areas to consider that could affect pre-approval and final mortgage approval: Condition of the Property and the Condo Building.
Condition of the Property
The “DIY” shows have made fixer-uppers look very popular. However, lenders see it differently. A “handyperson’s dream” or a “re-model your way” can be very difficult to fund. Lenders don’t like poor conditions and if a home inspection finds defective areas, then the chances are very slim for a mortgage.
It’s true that you are buying the condo and not the building. And even though all efforts have been made by the current condo owner to maintain and update the condo unit, if the building is in an undesirable state with higher than average fees or assessments, lenders are leery. Just like the condition of a property, the condition of the condo building needs to be in good standing. In all honesty, this should be a red flag for you as well.
I can never stress enough good communication with a well-experienced real estate agent and mortgage broker. We are here to make sure you purchase safely, securely and confidently.