I got pre-approved for a loan today!

[Account Closed]

I talked to a mortgage lender in my area, and after a few minutes of talking he was clearly excited about my situation! This got me really excited too, and he told me that I am formally pre-approved for a loan! I am taking a final look at a condo near me that I hope to purchase, and if all goes well I will be living in for awhile before renting it out long term. I am very excited and would love any advice you have for me!

[Shawn McCormick]

@Account Closed Congratulations! Thats exciting.

A few things to consider 

-make sure you are actually pre approved, not just pre qualified

-see if the lender can provide a list of 'warrantable' condos, you don't want to waste your time with communities that are 'non warrantable'

-make sure the complexes are solvent..have money set aside for repairs to roofs, sidewalks, lighting, pools etc.

-make sure the association doesn't have any existing or pending legal actions, this likely will disqualify the complex by your lender. 

-make sure there are no upcoming assessments that you may be responsible for after you close. This could be thousands that you aren't prepared for.

These things should try to be done prior to you going under contract and save you money on paying for inspections and appraisals only to find out the complex will not qualify.

Don't want to scare you, but condos can be tricky if you haven't gone thru the process first. I would weigh the cost of ownership of a condo, including the HOA costs to buying a single family that may be a little more upfront, but overall costs are the same or lower. You will also almost always gain more appreciation from single family than a condo. If the condo falls into disrepair, it will be much harder to sell (you are dependant on all of the other owners/investors/HOA to maintain the property vs a single family that you control more.

Hope this help, best of luck!