Buying a home and especially a condominium as your first property can be exciting and a little apprehensive all at the same time. If you’re looking to buy a condominium here are some things that most first-time homebuyers which they knew before making the big step.
Not borrowing the full amount the bank said you could afford.
Just because you are approved up to $400,000 doesn’t mean you need to max out that budget. That is simply the absolute maximum amount that your budget can handle. If you look at around $350,000 for a condominium you might be pleasantly surprised at a more comfortable mortgage payment each month.
Going for an APR instead of the fixed term loan.
That low APR could sound awfully tempting but give it a couple years when you need to refinance and realize that your rate is now skyrocketed. Getting in on a fixed, low interest rate loan now means that you’ll know exactly how much your mortgage payment will be each month and you don’t have to worry about it ever going up.
Waiting on a better deal.
The longer you wait the more chances you might miss out on a great deal. There are plenty of foreclosures and short sales out there but if you hang on and wait a little longer you may end up losing a great property. Find what works in your budget and if you love it make an offer on it.
Not asking about any major improvements to the condominium building.
One of the biggest things that condo buyers are surprised about after they purchase their home is a special assessment that comes down the line. It’s best to ask now if there have been any possible future improvements, changes or renovations that could cause financial difficulties to the Association. This extra fee will be piggybacked right onto the residence so make sure you understand about any future fees that will be incurred should you buy the condominium.
Not talking to neighbors and understanding the neighborhood.
You may love the condominium but if your neighbors above you are starting a major renovation project and will be very loud or they have barking dogs incessantly throughout the night this may not be the perfect condominium for you. Talk to a few neighbors and find out a little bit about the Association and the neighborhood before signing on the dotted line.