When people consider buying a condo in Chelsea NYC, they usually don’t think much about what they will actually need, but it can be beneficial to you to have everything in order before going to purchase a condo. The things you will need are about the same as what you would need to purchase a house, though you will need a few more things.
Financing
In order to purchase a condo, you will likely need financing from an FHA-approved mortgage lender or the FHA (Federal Housing Administration). In very rare cases, people don’t need financing because they have the money saved up to purchase the condo out flat. However, this doesn’t usually happen and condos can cost a lot of money. If you wait until you save up enough, you may never purchase a condo.
Along with financing, good credit is usually required, as well. Most lenders won’t give you a loan if you have poor credit. Therefore, if your credit isn’t good, you may consider working toward paying off your debts and raising your credit before applying for a loan.
Once you apply for a loan, the lender will review documents and board operations to ensure the building is up to code and in good condition. If the lender finds that the operations or occupancy limit has been reached, your loan will probably be denied.
A mortgage allows you to purchase the condo and make monthly payments, much like renting, though you will own the unit when you have completed the payments.
Insurance
The insurance for a condo is different from a traditional home because you are only insuring your unit, not the entire building. The insurance for any common areas of the condominium building is paid through dues. The type of insurance you get will depend on your specific needs and what the condo board requires.
Board Approval
In some cases, the condo board will need to approve your living in their community. This can mean background checks, employment checks and more. However, unlawful discrimination is not allowed, such as is stated by local, state and federal regulations.
You may be asked questions about your lifestyle, professional background and pets. They will also likely ask you for references of character and conduct an interview before giving you approval to move in, though you must still have financing and insurance before moving in.
