What you Need to Know About Buying a Condo

Champaign Condo Association Exposures If you’re ready to take the plunge into ownership after renting, now is a great time. However, buying a condo is a bit different from buying a single-family home. With that being said, here’s how to navigate the process to ensure a smooth transition. In addition, don’t forget to protect your investment with a customized Urbana Condo Insurance policy.

Finding the right loan.

According to Fox News, the Federal Housing Administration in particular has a number of regulations before it will back a loan on a condo unit. For instance, a minimum of 80 percent of the units in the building must be owner-occupied, so buildings that attract a large number of investors or real estate speculators will be off-limits to you if you want to get an FHA-backed loan. The building itself must also be on the FHA’s list of approved condo buildings, which means you might have to pass on the perfect condo if the building isn’t on the list. If your desired building is not on the list, you may have to find private funding for an increased rate.

Know the rules.

From renting out your place in the future to what kind of pets your complex allows, condos often come with various rules and regulations. Find out if the restrictions are stipulations that are realistic for you to manage.

Know the fees and what they cover.

The association is likely going to have HOA fees each month, so find out how much they are and what exactly they cover. Remember, if your association doesn’t cover it, that means you’ll be liable, which can tack on hundreds of dollars in expenses that you might not have been prepared for.

Is it well maintained?

Being lax about maintenance can hurt the resale value of the condo and also be a frustrating place to live. Find out who is responsible for maintenance costs and who manages any issues you might have.

If you’re considering buying a condo, make sure to protect yourself and your dwelling with a comprehensive insurance policy. Please contact us at Myers Insurance Group at (855) 534-5707 and we will craft a policy tailored just for you.

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