Wednesday, June 12, 2013

Condo Mortgage in Sarasota

Getting a mortgage for a condo in Sarasota, or any other area in Florida, is possible but not an easy process.   To make the process as easy as possible, please use a local lender.

If you are planning on using your condo as a vacation home, you will need at least 30% down, regardless of your credit score, as of this writing.  If you are using your condo as an investment property, the 30% down still applies but you will likely have a higher interest rate.

As a buyer, you should get a mortgage qualification letter from your lender prior to starting your search.  One thing to watch is condo association fees.  The average condo fee in the Sarasota area is $350 per month.  These fees can negatively affect your income/expense ratio and could decrease the price range of the condo you can afford to purchase.

Banks no longer check just your own individual credit when making a lending decision.  They are interviewing condo associations through written questionnaires, as well as scrutinizing their financial statements and their association insurance limits and deductibles.  The irony is that you may well qualify for a mortgage, but the condo association won't meet your lender's guidelines.

Most of the condo associations in the areas I serve won't have a problem with meeting lender criteria for your mortgage.  The issue comes into play when selecting a realistic closing date, to give you enough time for final mortgage approval.  

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