[Oneota]

I'm looking at moving from an apartment to a condo. I think I've identified the one I want that (I hope) is within my budget, but haven't taken the process any further than that.

Does anyone have any helpful advice for making the process as easy and affordable as possible? Thanks!

[Cubeoid]

Take care handling heavy items.

[Mr. Blur]

if you are looking at a condo or townhouse it is essential that you look at the history of the complex. there should be records/minutes of meetings of the owners of the individual units - read these thoroughly as you can often find out about problem units, maintenance issues etc etc.

[OldManMac]

Make sure you hire a lawyer who specializes in real estate, so there are no surprises at closing.

[DigitalEl]

Home Buying for Dummies... Great book. Don't laugh. It covers a lot of basics. Even with a lawyer or a real estate professional on your side, it helps to know some of the concepts in detail going into the process.

Also, with a condo or a high rise, make sure you find out and get in writing how much each unit/owner is responsible for when it comes to common items. If you're in a medium-sized building and something like new elevators are needed... It could run in the seven figures. Divide that by only a few owners and you're stuck with a hefty bill. On a really small-scale building or complex, even something as simple as repaving a parking area can stick you with a big check to write.

[Oneota]

Originally posted by DigitalEl:
Also, with a condo or a high rise, make sure you find out and get in writing how much each unit/owner is responsible for when it comes to common items. If you're in a medium-sized building and something like new elevators are needed... It could run in the seven figures. Divide that by only a few owners and you're stuck with a hefty bill. On a really small-scale building or complex, even something as simple as repaving a parking area can stick you with a big check to write.

But isn't this what association dues are for?

Thanks for the advice, all! Keep it coming!

[-Q-]

Originally posted by Oneota:
But isn't this what association dues are for?

Typically, yes. But if the expense is greater than your condo reserves, or the board decides it's better to have a special assessment than to drain the Association reserves, you can have a grande bill to pay.

You'll definitely want to ask for the maintenance records and the history of special assessments. And take a look at the condo finances to see how they take care of things. A good rule of thumb is to have 3 to 6 months of association fees in the reserves to handle those large expenses that do come up.

[Oneota]

Originally posted by -Q-:
Typically, yes. But if the expense is greater than your condo reserves, or the board decides it's better to have a special assessment than to drain the Association reserves, you can have a grande bill to pay.

You'll definitely want to ask for the maintenance records and the history of special assessments. And take a look at the condo finances to see how they take care of things. A good rule of thumb is to have 3 to 6 months of association fees in the reserves to handle those large expenses that do come up.

It seems to be standard practice around here not to give out the association minutes, etc, until after the offer has been accepted by the association (they give you 10 days to review the materials and pull out of the deal, should you choose). So I'll definitely look them over, but I guess I can't do that until I make the offer.

Thanks for the advice, all! Anyone else?

[rozwado1]

Shop around for a good mortgage rate.

[macroy]

Condos... find out how much the fees are and what the trend increases are. Its amazing how frequently those things can go up. And also find out what they include... You should be able to obtain a copy of the association bi-laws.

As for the dummy's books. I've not read a bad one yet. So it would definitely help.

Also, make sure YOU hire the home inspector. I've heard of instances where the seller (or the seller's agent) hires them... and guess who they're looking out for? And make sure they are reputable and can guarantee their findings for major items. I forgot the association you want to look for... but hopefully someone can fill that gap. And when he's there - ask about how everything works... if theres rust on the HVAC system, ask why he thinks its there (possible leak?). Make sure he checks the highht of all the pipes and flums to make sure that they are all the proper height. I had to spend $500 to get one fixed because it wasn't correct (although I suspect that condo should be responsible for that).

Research, Research, and Reseach..... this is most likely your biggest investment. And doing your homework will definitely payoff in the future. Find out what future planning are in the works around the area (if its in a growing community). The last thing you want is to find a great home, then come to find out that a shopping center is going up in your backyard.

Good luck - and congratulations.

[JHromadka]

Originally posted by macroy:
Condos... find out how much the fees are and what the trend increases are. Its amazing how frequently those things can go up. And also find out what they include... You should be able to obtain a copy of the association bi-laws.

Ain't that the truth. My homeowner dues keep going up and up because of maintenance they're doing in my townhome's complex.

[Rev-O]

Originally posted by rozwado1:
Shop around for a good mortgage rate.

Absolutely. My wife worked in the mortgage field for many years, and I came to the conclusion that many loan officers are liars and thieves. There are a multitude of ways for them to jack up fees on you, all the while making you think you are getting a good deal. You can shop around for loan rates. Any loan rate that sounds to good to be true, is. Every investor essentially has the same rates +/- one half percent. If a mortgage company says they can give you a 30 year fixed at 3%, they are making more money off of you somewhere else (i.e. origination, discount points, bait & switch with programs, etc.) Read your Truth in Lending Statement and Good Faith Estimate VERY closely, and ask them to explain everything if you are uncertain. Have them put EVERYTHING in writing. Verbal agreements mean nothing. Research on the web: there are a multitude of '30 year' loans. Just because it is called a '30 year' loan doesn't mean that it is a 30 year fixed rate loan (there are ARMs, LIBORs, balloons, interest onlys, etc), all of which have different rates, different upsides, and in many cases, significant downsides.
You can fill out as many loan applications as you want, but keep in mind, any time you fill out a loan application, you are pretty much giving that company authority to pull a credit report, which you will have to pay for, but you can ask for a copy of it. Each time a company pulls a credit report, it will lower your credit score a bit. And if company A pulls a credit report on you and you get a copy, you probably will not be able to take that credit report to company B for them to use. Each company is most likely making a profit off the credit report, some they're going to want to charge you again.
Make sure you get the property inspected by an objective 3rd party inspector, not someone recommended by the listing agent, your agent, or the mortgage company. All these people may just want you to buy the property so they can make money for the least amount of work. There is no gaurentee that they have your best interests in mind.
I don't want to scare you, but I do. The mortgage industry has many dishonest people in it. It also has some good and honest people... but they all kinda sound the same. Loan officers in most states are UNLICENSED. Go into the process with your eyes wide open. Ask questions. The mortgage industry is one of the least consumer unfriendly industries there is. Not everyone is out to get you, but some of them really are.
Honestly, I've never had a problem with any of this. I've only bought 2 homes, but I've known and talked to loan officers for over a decade. Most of the people are decent people. Most, but not all. I've heard loan officers pleased because they got 5% origination out of a customer. Bait and switch. Outright lies. Loan officers trying to take advantage of minorities. And virtually none of it is illegal, because all the dishonesty gets disclosed at some time in some way. I'm not a bitter consumer by any means, I've just seen and heard about the seedy side of the business for a decade. Just be aware and be informed.
And congratulations. This is one of the scariest and most exciting moments in your life. Don't let all the negetive things I've said dissuade you, or frighten you. Just be aware and informed. And be excited at buying your own crib!

[Oneota]

All right folks, thanks for the advice. I just made an offer, and it was accepted. I've got the papers (and will be requesting meeting minutes, etc), and will take your advice to heart. Thanks a lot!

(Oh, and the place I'm getting is here)