1)   What exactly do the condo dues include?

2)   Is there adequate coverage on the master insurance policy?

3)   Does the condo association limit the size of, or prevent you from having pets?

4)   Are there any pending special assessments?

5)   Will you be able to obtain conventional financing?

6)   Are there any special policies regarding rentals?

7)   Is the condo association self managed or is there a paid management company?

8)   Are there a significant number of other owners not current on their condo dues, & how does that affect you?

9)   What is the difference between a common element and a limited common element?

10) What have been the recent sale prices of similar properties in the building?

There are many special considerations as you evaluate your purchase of a property that is held within a condominium regime.  You should always consult a real estate professional and get all the facts before making any final decisions.  Some states (Maryland included), have state statutes that protect the buyer with a Right of Rescission. These rescission periods generally kick in after the purchaser has had time to review all of the condominium documents. Make sure you know the laws in your state.

I can not stress the importance enough of working with a lender that has a proven track record of processing and approving a condominium product loan. If they don’t, many loans have not been placed, because lenders take a loan that they can not compete.

Paul Soule with Coldwell Banker Home Mortgage takes the time to discuss with me, the unique situations that arise with condominium financing, and thoughts for 2010 interest rates.

There are new Federal consumer protection rules that take effect July 30, 2009 affecting those applying for a loan to purchase a primary or secondary home, or if you are refinancing.

It’s not been given a lot of publicity, so if you are considering making a purchase and getting a new loan, or possibly refinancing an existing loan you need to pay attention.

The highlights are as follows:

The lender must provide or mail an initial Truth In Lending disclosure within 3 days after receiving the borrower’s loan application.

Lender’s must deliver or mail a finalized Truth In Lending disclosure statement at least 7 business days before closing on the property.

If the annual percentage rate (APR) increases more than 0.125% the borrower must receive a revised Truth in Lending at least 3 business days before closing. What could cause your APR to change?  Several possibilities.  If you allowed your initial interest rate on the loan to float with the market but rates increased, or if the lender got inaccurate estimates of costs from a third-party participant in the transaction such as the settlement company.

Thanks to Paul Soule from Coldwell Banker Home Loans for providing this update.