Condominiums

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We plan to run a series of articles highlighting condominium complexes in the area. This will be helpful to buyers moving to Leominster and the surrounding towns. It is sometimes hard to tell what the differences are in what different complexes offer.

One thing to realize is that a condo purchase is not a quick process. This can be said for all housing purchases these days- things just don’t fly through the system, and closing delays are frequently seen. A recent change in HUD guidelines eliminates “Spot Loan Approval.” 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 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, 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.

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