Applying for a home loan can be a challenging and sometimes unnerving task, especially for first-time homeowners. Even well heeled buyers can feel a bit anxious when going through the application process, thanks to the many pitfalls that could result in a denial. Fortunately, you can avoid many of the pitfalls that trap most applicants with just a bit of good advice. Successfully navigating through the home loan process will help you be on your way towards purchasing a Boston luxury condo, Boston waterfront condo or other Boston real estate.
The first step in applying for a home loan is to choose the lender with the best rates available. Once you’ve arranged a meeting with your lender, the process of approving the loan application begins in earnest. The lender will investigate your employment history, income and credit scores in order to gauge your ability to repay the loan.
The lender will then assess the state of the condo you’re buying. There are many factors that can influence the lending process. These include the state of the management team tasked with condominium upkeep and the current financial status of the homeowner’s association. Units in foreclosure and units with owed condo fees extending months back are usually red flags to lenders.
Buyers should be aware that there are plenty of reasons for lenders to turn down a loan. For instance, the lender may not approve a Boston new condo loan if there is pending legislation for the condominium complex in question. Many first-time condo buyers choose to finance their condominium purchase with an FHA home loan. However, these loans have stricter underwriting requirements that leave greater chances for a rejected loan application.
Your Boston realtor should have more information on the best condominium purchases in the Boston area.