It’s not always necessary to buy a condo by one-time investment. There are many townships like Piermont Grand that allow the people to buy a condo with the loan. They offer a lot of plans so that the people can buy condos before construction on finance.
Things to know about financing pre-construction condos:
1. Need for having pre-approval of mortgage
If you want to have a good start then you should apply for the mortgage prior to the meeting with the seller. This pre-approval protects from excessive debts and ensures that the amount will be cleared at the proper time instead of getting defaulted. This rule has some exceptions according to which the builder whose selling mark reaches 80%, its financial restrictions are removed.
2. Factors which affect the mortgage getting eligibility
The credit score rating plays a very important role in becoming eligible for financing. For getting finance, it should be maximum 700. Below this range, the brokers do not approve the finance application. Your income ensures the seller that you will comfortably pay the installments of the loan. That’s why people who are self-employed or do not have any working transaction history in banks are restricted to get loans or mortgages.
3. Time of rate guarantee by banks
While purchasing a condo which is under construction, it is important to get complete details from the bank. It will become a matter of intense risk if the person keeps paying all the installments and at last the builder doesn’t complete the condos on time. In such a case, the money spent will turn into a big loss. People should ask for legal documents from the builders which will represent the date and time of start and completing the building construction. So, if any problem arises then the investors can claim for their rights.
4. Calculation of occupancy fees
Some people think that paying occupancy fees even before building construction is not safe as giving money for pre-occupying purpose is not a relevant thing to do. But the actual fact is that they can claim easily for their favorable apartment after construction. This fee comes up with the condo maintenance fee after which the person does not need to have any stress. It has a very simple procedure as compared to other legal processes.
After doing all formalities and paying all debts still there can be a doubt in the mind of the individual that may be after construction the company changes its policy and increase the rate of interest. So, it’s better to go for those brokers who provide legal guaranty regarding finances.
6. Finances for micro condos
Not everyone wants a big home for their family. Some people who shift from their cities prefer to live in small and comfortable condos. But due to low income and poor financial background, they are not able to buy micro condos on onetime payment. Several brokers provide plans and policies for financing micro condos on easy installments.
7. Using own bank or broker
It will be better not to commit your own bank before finalizing the mortgage deal as at some places the brokers offer installments of loans at low-interest rates. So, if you once get committed with your own bank then you will not save enough money.