Bristol CT Condo for Sale.
There are many great condo complexes in Bristol, Connecticut. I know I bought my first condo in Bristol. But since I bought and sold my condo the rules on financing them have changed, in fact that change is very recent. If you are thinking about buying a condo for sale in Bristol, CT you need to know about these changes.
The recent changes are changes made by FHA on their condo complex approval process. To get a mortgage to buy a condo the condo complex must be approved by the bank. They want to know certain things about the complex you would like to buy in like how many units are lived in by the unit owner and not rented (the more owners living in their units the more stable the complex), are there any restrictions on resale (this could hinder the ability to resell the unit later), is there enough money going into reserves each month to fund future renovations (a large special assessment could make it hard for unit owners to pay their mortgage). There are many questions a lender will want to know the answer to on a Bristol CT condo for sale, these are just a few of them.
Since almost everyone buy a condo uses an FHA mortgage this is a major deal. One you must pay attention to and discuss with your lender. Make sure you can get financing for the Bristol CT condo for sale that you would like to buy before falling in love with it and making an offer. While you can check at this page if a condo is FHA approved or not, make sure to discuss each condo with your lender before making an offer.
The article below does a great job talking about many questions you should ask before buying a condo in Bristol CT or any other area for that matter. Condo's are mini-communities and you need to get to know that community before buying in it.
Would you like a referral to a real estate professional to help you in your search for a Bristol CT condo for sale, or a condo in a surrounding town? Call me at 860-306-8029.
10 Questions to Ask the Condo Board
Before you buy, contact the condo board with the following questions. In the process, you'll learn how responsive - and organized - its members are. You'll also be alerted to potential problems with the property.
1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.
2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can't rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review property docs, including the master deed, for you.
3. How much does the association keep in reserve? Plus, find out how that money is being invested.
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn't the assessment cover? Does the assessment include common-area maintenance, recreational facilities, trash collection, and snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board's fiscal policy.
7. How much turnover occurs in the building? This will tell you if residents are generally happy with the building. According to research by the NATIONAL ASSOCIATION OF REALTORS®, owners of condos in two-to-four unit buildings stay for a median of five years, and owners of condos in a building with five or more units stay for a median of four years.
8. Is the condo building in litigation? This is never a good sign. If the builders or home owners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer's report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren't in good repair, they become your problem once you buy.
10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you're buying, may require separate assessments.
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As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"