Learn how to buy the property of your dreams.
Buying a property is one of the biggest investments you can make in life. It is a decision that goes beyond personal tastes, size, and location. If you are interested in purchasing an apartment, you must know the requirements for securing financing. Here, we share several tips you should keep in mind before buying a condo unit.
- Contact a banking institution
It is common practice to begin the process by searching for an apartment, but the first step should be to confirm with your preferred banking institution whether you qualify, in terms of your finances. After, you can confirm with the institution whether the property you are searching for is also eligible for the type of financing you want.
By telling your bank about your income, expenses, and debts, their experts can help you figure out your estimated repayment ability, which can help you focus your search on those properties for which you qualify.
"When a customer comes to our offices or calls us, we give them an orientation about the mortgage loans we have available for purchasing a property. We let them know it's important to go through the pre-qualification process," said Ana Martínez Román, manager at
Popular Mortgage.
To purchase an apartment, you may be able to secure financing through an FHA loan, a loan for veterans or rural properties, as well as Fannie Mae and Freddie Mac mortgages. Non-conforming loans also qualify.
- Return the eligibility questionnaire
Each investor has questionnaires that stipulate their specific requirements. This analysis allows them to evaluate whether the apartment building meets the eligibility requirements to mitigate risks related to security, structural stability, habitability, and functional use in its entirety.
The financial institution provides every customer with a copy of the questionnaire which must be completed by the building administrator or a member of the building's board of directors.
"The questionnaire gives us important information about an apartment building. It tells us if it's in a flood zone, if there are any apportionments in progress or expected. Also, [it examines] the maintenance fees, delinquency, physical condition, and if damages caused by hurricanes or earthquakes have been corrected. As well as whether it has commercial spaces, which insurance coverage it has, among other things," explained Yolanda Martínez Mateo, loan supervisor at
Popular Mortgage.
- Search for the perfect unit
When searching for a home, you may consider several factors, such as location, the safety of the area, condo amenities, and the distribution of the interior spaces. Some people look for properties located close to schools, hospitals, or shopping malls. Another factor to consider is whether the unit was recently remodeled. Revise all the finishes in the kitchen and bathrooms as well.
"Before you buy an apartment, it's important to request a copy of the condominium's regulations. The administrator can provide that to you because it's a public document. There are many restrictions you should know about before taking the step of buying an apartment," stated Madelyn Garay Delgado, mortgage technician at
Popular Mortgage.
If you are still searching for your apartment, you can find several options on social media, through classified listings, or get an orientation from a real estate broker.
The Popular Mortgage team will guide and prepare you to fulfill your dream of buying a home. For more information, go to www.popular.com/en/mortgages, call 787-707-7070, or visit any of our mortgage centers located around the island.
