Applying for a mortgage for a Chicago condominium? Ten questions you should ask.
In addition to looking at the unit you are interested in purchasing and considering the annual real estate taxes and monthly condo assessment fees, you should also ask these questions which pertain to the entire condominium project:
- What is the total number of units in the overall project?
- How many of those units are used for investment/rental purposes?
- Are all units, common elements and amenities complete?
- Does any single entity own 10% or more of the total units?
- How much money is held in reserve for future repair of major components of the project?
- Is any part of the project used for commercial purposes and if so, what overall percentage?
- Is the project the subject of any pending, current or recently mitigated litigation?
- Does the project allow short-term rentals or operate as a condo/hotel?
- Are any of the units rented or held by the original condominium developer?
- Does the condominium budget contribute 10% of the total HOA revenue to a reserve fund?
When applying for a Chicago condominium mortgage, most mortgage lenders will want to know the answers to these questions. In addition to being more prepared for your loan application, these are also important answers for you to know before making a buying decision.
United Home Loans is an expert condominium lender. Call one of our loan offers for more information at 708-531-8388.