Buying property doesn’t always mean buying a home. While some people want the larger structure yard and fence that might be too much living space for some people. Some property buyers don’t want to or don’t have the ability to maintain their grounds, or they may be looking for amenities that they aren’t necessarily going to be able to afford if they buy a comparably priced home. These buyers often look into purchasing condominiums or cooperative housing. At Cliffco Mortgage Bankers we often see clients interested in purchasing these types of property, and we know that there are special considerations co-op and condo buyers should keep in mind.
Cliffco Mortgage Bankers Can Help You Own Property
At Cliffco Mortgage Bankers, we help our customers achieve the dream of property ownership every day. We help them find loans that make buying property they thought might be out of reach. We want our customers to understand what goes into buying a co-op or condo so you can decide if buying these properties are right for you.
What is the Difference Between Condos and Co-Ops?
The first thing any potential buyer should know is the difference between condos and co-ops. According to HuffPost, the key difference involves who actually owns each type of property. If you purchase a co-op, you’re buying into property that’s actually owned by a corporation. You’re actually buying shares of that corporation, which is operated by a co-op board and because of this, there is often a very intense approval process before you can move in. You’ll likely be interviewed about information that you provide to the board and the board has full power to approve or deny your application.
Condo buyers will actually own the property and will receive a deed following the purchase. Owners are required to pay monthly charges to maintain common areas of the condo complex. These are similar to maintenance charges that co-op purchasers have to pay.
What You Should Ask
While it’s certainly important for you to get your information together in order to prepare for a co-op board or condo association prior to your purchase, there are things you need to be asking them as well. According to FindLaw, you should get information about the financial condition of the association or co-op board. You should also find out if either the board, or the association has any pending lawsuits against them. Potential residents should try to find out why and what the outcome of any lawsuits were. If buyers have a chance to talk to current or former owners at the complex they should do so.
Another way to protect yourself is to do a thorough check of the structural integrity of the units you’re about to purchase as well as any common areas. You could be on the hook for a share of any repairs.
Cliffco Mortgage Bankers Takes You Through the Purchase Process
If you’re in the market for a condo or co-op, you’re likely going to need financing. Cliffco Mortgage Bankers can help. We’ll let you know the types of loans available for condo and co-op purchasers, take you through the buying process and let you know what you might be qualified for. Contact us today.