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

Health4 days ago

Simple Ways To Feel More Confident At The Gym

If you are new to the gym, or you haven’t been in a while, sometimes you might not feel completely...

Business1 week ago

Can You Use Residential Property for Commercial Use

Having extra income, constantly flowing in can make all the difference in the current economy. Getting creative with how you...

What Do Business Consultants Do What Do Business Consultants Do
Business3 weeks ago

Running a Business? How to Minimize Supply Chain Issues

Supply chain issues have always been an issue for businesses but over the last few years, the effect and widespread...

Home Improvement4 weeks ago

How to Increase Your House Value Before Selling

Increasing home value is the first step to making your place more attractive for future buyers. Whether you are trying...

General4 weeks ago

Why Calorie Control Is Still The Best Way To Diet

There are a great deal of different options when it comes to dieting, every day there seems to be a...

The Benefits Of Trade Credit Insurance For Your Business The Benefits Of Trade Credit Insurance For Your Business
Business1 month ago

The Benefits Of Trade Credit Insurance For Your Business

Trade credit insurance provides cover for businesses who trade on a credit basis. If the people who owe money for...

5 Charming Restaurant Decor Ideas In 2022 5 Charming Restaurant Decor Ideas In 2022
Miscellaneous2 months ago

5 Charming Restaurant Decor Ideas In 2022

Making your restaurant memorable and stand out is a feat worthy of praise. The sheer pressure of wanting to succeed...

Bank Won't Fund Your Business? 4 Loan Alternatives To Get You Started Bank Won't Fund Your Business? 4 Loan Alternatives To Get You Started
Business2 months ago

Bank Won’t Fund Your Business? 4 Loan Alternatives To Get You Started

Businesses typically require some sort of collateral or proof of concept before funding their business venture. However, it is possible...

Planning A Stag Do Planning A Stag Do
Miscellaneous2 months ago

Planning A Stag Do

If you’re a Best Man then you’re in a unique position of responsibility, and before the day itself when you’ll...

Tips to Reduce Eczema Flare-Ups Tips to Reduce Eczema Flare-Ups
Health2 months ago

What Triggers Eczema | Tips to Reduce Eczema Flare-Ups

Eczema is a skin condition that can induce redness, itchiness, and skin inflammation. Its root cause is not fully understood,...

Women's Fashion Trends To Expect In 2022 Women's Fashion Trends To Expect In 2022
Lifestyle3 months ago

Women’s Fashion Trends To Expect In 2022

A new year means new fashion trends. We cannot wait for what is in store in 2022. It seems that...

Home Makeover Trends: Insights from The Pros Home Makeover Trends: Insights from The Pros
Home Improvement3 months ago

Home Makeover Trends: Insights from The Pros

Are you considering a home makeover but don’t know where to start? You’re in luck! In this article, we will...

Interior Design Trends 2022 Interior Design Trends 2022
Home Improvement3 months ago

Interior Design Trends 2022

We all spend time pining over other people’s interior’s on Pinterest or Instagram, but with these trends, it’s easy to...

Top Commonly Overlooked Car Maintenance and Repairs Top Commonly Overlooked Car Maintenance and Repairs
General3 months ago

Top Commonly Overlooked Car Maintenance and Repairs

Maintaining a car is a huge responsibility. There’s a lot that goes into that given how complicated a machine it...

What Is The Difference Between Strata and Property Manager What Is The Difference Between Strata and Property Manager
General4 months ago

What Is The Difference Between Strata and Property Manager

Real estate is a diverse market, and as such, it can be hard to determine the differences between various types...

Categories

Archives

Trending