There is a limited supply of good condos in a good neighborhood. Buyers compete for attractive and well-priced units. It is, therefore, important to be knowledgeable before buying a condo. Here are five tips that can help you in buying a condo.
Get pre-approved in advance
You should find out what you can afford. You can go to a mortgage specialist and get pre-approved in advance. This will allow you to know whether you can afford it and how much you need to save up to pay the down payment. By getting pre-approved, you will narrow down your search for condos.
Start with small
You might be approved of a big condo, but you need to decide whether how much money you should spend in your first home. You shouldn’t tie yourself up in paying a huge amount of mortgage. So, it is better to start with something small first.
Know about the deposit structure and interest rates
For buying a pre-sale condo, you need to put a down payment on a condo that you won’t be living in for 1 to 3 years. The down payment is usually 5%. So, you have some time to keep the rest of the money in the bank and gain interest.Some builders partner with mortgage brokers and agree on paying the same interest rate today and the coming three years when you take possession of the condo.
You should do thorough research before buying your condo. The design and decoration are important, but so are the amenities. You should do research on the neighborhood before buying a condo.
You should be flexible with your options for buying a condo. For example, if you think you might need more space in the future, then it’s better not to buy a studio condo. If you think of selling your condo in future, then you should by something that will give you good resale value.
Buying condo is a big decision. You should take time before making your final decision. You can talk to realtors and discuss your needs. They can give you good advice.