There are a lot of hurdles to jump when buying a Chicago condo in today’s real estate market. But you’ve done your homework and are now considered a qualified buyer: You’ve got your credit score up, you’ve saved money to use for a down payment, you have a secure job with a steady paycheck, you’re ready to settle down for five or more years… Great! Just one more thing to keep in mind when purchasing that condo…
Before falling in love with any single unit, make sure you check out what’s going on with that particular condo building as well. The lender may be impressed with your personal situation and deem you a very qualified borrower – but unless the building in which you’re looking to buy measures up, too, it may be difficult to secure financing.
If a building’s financial and legal standing does not meet a certain standard, many lenders are hesitant to grant loans to people to buy in that property. This is mainly because the lenders then have trouble selling the loans to federal mortgage backing agencies (such as Fannie Mae and Freddie Mac) who do not want to take on what they believe to be “risky” loans.
If you’re in the market to buy a condo, it may behoove you to know which situations mortgage lenders are trying to steer clear of. So what are some of the warning signs you can watch out for when conducting your property search? Some biggies are pending litigation, unpaid assessment fees by other owners in the building, a large number of renters in the building and insufficient reserve funds. Your Chicago real estate agent can help you find the perfect unit in a condo building with a solid financial footing that is also free of legal or other issues.
