CondominiumÂ Ownership inÂ Cave Creek,Â Carefree,Â ScottsdaleÂ ArizonaÂ are convenient forms of Â "lock and leave" ownership. Â You own your unit but the common areas, which include the entire project with the exception of the airspace contained inside the unit are owned commonly with the other owners in the project.
The beauty of this form of ownership is that you pay a "Homeowner's Association" to manage the grass, the interior roads, the exterior of the building, the roof....the list goes on. Â Pretty much all you have to do is show up and enjoy the lifestyle.
While you may have electrical or gas bills paid individually with the ownership of the unit, the remainder and in some cases the water, are shared either equally or proportionately by all owners.
The purchase is easy, but beware, financing can be an issue.
AtÂ Coldwell Banker Residential BrokerageÂ ScottsdaleÂ ArizonaÂ we actually have an inhouse lender that will handle the financing forÂ condominium purchases. Â Recently, we had a briefing on the latest condominium regulations relating to financing. Â Here is how it goes....
Lenders will require the borrower to pay for the necessary condo information during the processing. Â This can include: Â a completedÂ Condo Questionnaire, a copy of the Annual Budget and a copy of the Master Homeowner's Insurance Policy. Â The questionnaire Â itself can cost anywhere from $0-$450 depending upon the management company. Â Some management companies charge more than that Â just for copies of the Master Home Owners Insurance and the Annual Budget. Â This can be aÂ VERY LARGE UP FRONT COST.
To qualify for FHA, VA or FREDDIE MAC funding certain items can REDFLAG a loan, making it unsellable to one of those entities....and the lender wants to be able to sell the loan to a federal program as they receive a fee for the loan and do not have to utilize their own funds to "book" the loan in house. Â To you, the consumer, lower rates will result from being able to sell the loan to a federal entity.
So what will compromise a loan from being sold? Â Here are theÂ REDFLAGS.
So how do you do your homework in advance? Â Or better said, yourÂ RealtorÂ should know how to do this.....if they don't you don't have the rightÂ CondominiumÂ Realtor.
Or better yet, utilize the services of aÂ RealtorÂ with experience sellingÂ CondominiumsÂ inÂ Cave Creek,Â Carefree,Â ScottsdaleÂ Arizona, and yes, I have that experience....give me a call!
By: Â Jeff McDowell