How to Buy a Co-op or Condo
- 1
Get pre-approved for a mortgage.approved stamp image by Brett Mulcahy from Fotolia.com
Get pre-approved for a mortgage. To estimate how much you can afford, take your total recurring debts---credit cards and loans---and divide that number by your gross monthly income. This will yield your debt-to-income ratio. Your mortgage should not exceed 28 percent of your gross monthly income; remember to include monthly fees plus mortgage and taxes. - 2
Locate properties that fit your needs.searching image by dinostock from Fotolia.com
Locate potential properties that meet your needs. Co-ops, or cooperative housing projects, are typically found in the Northeast, especially in New York City. Condos can be found throughout the United States. Once these properties are identified, inquire as to monthly association and/or maintenance fees, the amount in the association's reserves, and any special assessments that may be coming in the next 12 to 18 months. - 3
Get a real estate agent.business man image by Dmitri MIkitenko from Fotolia.com
Contact a local Realtor or real estate broker that specializes in condos and/or co-ops. Realtors have extensive experience in locating properties that suit their clients. They also act on your behalf to protect your interest with such details as escrow amount and price negotiation. - 4
Have the unit inspected.building inspector,woman image by Greg Pickens from Fotolia.com
Have the unit inspected. Before making an offer or as a contingency on an offer, have a licensed real estate inspector conduct an inspection of the unit and the building at large. In condos and co-ops, the homeowner's association will be responsible for all common areas, while the seller will be responsible for repairs to the unit itself.
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