The process of getting into a condo is slower today

A condominium unit purchase is not a quick process. Things proceed slowly through the system for any home purchase, and closing delays are frequently seen. A recent change in HUD guidelines eliminates “Spot Loan Approval” for most condo purchases.

What does this mean for you if you want to purchase a condo? It means that most complexes now require full approval, meaning that you have to allow at least 6-8 weeks for the process. Get as much of the legwork done before you start looking. Make sure you are prequalified with a reputable lender. Some sellers require you to be approved by the lender that they choose. It doesn’t mean that you have to use that lender when you actually get your mortgage, but it’s something to be aware of.

Being prequalified means that you are looking in the proper price range. It also can help you gauge the downpayment that will be required. The FHA’s new stricter lending policies are requiring a 10% downpayment if your FICO score is low (below 580), although keep in mind that most lenders will not loan to FHA borrowers who have a score below 620. If you find that your “legwork” includes working to raise that FICO score, find out what steps you can take to do that. We can help by referring you to a lender with software that tells you just what steps you need to take. Call Gerry at 978-537-6401 x24.