Connect with us

Business

Things To Know While Buying and Financing An Apartment

Things To Know While Buying and Financing An Apartment

In order to buy an apartment, you will need a loan to finance your property like any other residential property. You have to run around various loan providers and financiers to get various documentations and completing the formalities. Rocco Basile who is expert in dealing with property buying and selling has provided few guidelines.

Things To Know While Buying and Financing An Apartment

What is the type of your property?

Your property may be a condo, duplex or triplex and all properties are classified differently and the rules of loans vary according to the type of property that you choose to buy.

How to qualify for getting loan?

Any financier would like to check your income, credit score and the tax returns both personal and business for last two consecutive years. Important parameters that they check are as follows:

  • Your annual income and expense details
  • Your current debts
  • Ratio between loan amount and the value of the property.

According to Rocco Basile, small banks are usually more flexible as compared to any large banks.

What are the terms of the loan?

Some people prefer short term loan that can be 5 or 7 or 10 years term while some prefer long term loan, which continues for 25 to 30 years. Interest rates can either be fixed or variable after a specific period of time. Interest rate also may vary for short or long-term loans.

How much loan can be obtained?

Normally any financier will expect that 25 to 30 per cent of the cost of property to be borne by the buyer while they will provide the balance amount. However, that must also be within certain maximum limit that varies from different financiers.

What is the fee?

There are various fees required like for example appraisal fee, closing cost fee, title and escrow cost fee, inspection fee, property insurance cost. If the property is located near flood zone then flood insurance will also be needed.

What is prepayment penalty?

In case, the borrower decides to pay off a large portion of loan much before the end of term then he needs to pay certain penalty for that. This penalty is calculated based on certain formula that also depends upon a number of factor. Some banks have a table created for this and based on that prepayment penalty is decided.

What is recourse and non-recourse loans?

If the loan given by the lender is full recourse then the lender can claim the asset of the borrower or guarantor in case the borrower fails to pay back the loan. In case, of non-recourse loan the lender will foreclose the loan and take the possession of the property.

What are the documentations needed?

Following documentations are needed –

  • Photo of the property
  • Full description about the property
  • Total layout plans
  • Details about nearby properties
  • Various floor plans in detail
  • Details about source of funds
  • Closing price of the property

Name and addresses of seller, their attorneys and other professionals, who are involved in this deal.

Continue Reading

Recent Posts

Autos2 days ago

Choosing the Right Tail Lights for Your Car or Bike

If you need new tail lights for your car or bike, you’ll want to take several factors into consideration so...

End of lease cleaning in Melbourne End of lease cleaning in Melbourne
Home Improvement2 days ago

End of lease cleaning in Melbourne – Move in and Move out easily

If you are a tenant, you are sure to be aware of the fact that you get to move into...

team in Sydney team in Sydney
Lifestyle2 days ago

Tips in finding a trustworthy removalists team in Sydney

Relocating to a newly rented or leased house space can be a tedious and time-consuming process to perform on your...

Lifestyle4 days ago

4 Fashion Additions to Complete Your Outfit

A wonderful outfit can make you appear and feel like someone who can conquer the world without even breaking a...

Autos5 days ago

How to Go about Selling an Old Car for Parts

Selling an old car for parts is easier than most people realize, and your junker could be worth quite a...

Business2 weeks ago

4 Things to Consider Before Choosing a Feed Tank for Your Manufacturing

In every day manufacturing you may find that you need a feed tank for your operation. Selecting the right feed...

Tech2 weeks ago

How to Find a Phone that Fits your Needs

Are you looking to buy a phone that may suit your needs without poking a hole in your wallet? You...

Lifestyle2 weeks ago

Elegant Dinner: 4 Ways to Fancify Your Next Get-Together

Throwing a social gathering in the comfort of your own home can be a joy. If you want your upcoming...

Autos2 weeks ago

5 Issues You May Face in the Aftermath of an Auto Accident

Being involved in a motor vehicle accident is something we all would like to avoid. However, no matter how safe...

Business3 weeks ago

5 Ways Guest Posting Can Help Grow Your Online Audience

Guest blogging is the process of posting your original content on someone else’s website. This might seem like a counterproductive...

Home Improvement3 weeks ago

4 Important Ways You Can Update Your Decades-Old Home

Modernizing an older house doesn’t need to be a time-consuming or expensive process. With a few simple upgrades and a...

General3 weeks ago

3 Ways to Strive Toward Better Sexual Health

September is World Sexual Health Month! A critical part of our overall well-being is sexual health. This month is the...

Finance4 weeks ago

Strapped for Cash? 5 Ways to Earn Money Quickly

The dream is to be in a position where you don’t have to worry about money. Until that dream becomes...

Autos1 month ago

4 Signs Your Transmission May Be Going Out

Of all the mechanical problems that your vehicle might have, a transmission issue is perhaps the most dreaded. If you...

Ideas to Increase Attendance Ideas to Increase Attendance
Tech1 month ago

Creative Event Promotion Ideas to Increase Attendance

In modern and challenging world technology integration is considered as the crown of the successful business. Technology revealed the consistent...

Categories

Archives

Trending