Much like buying a single-family home, credit and money are required to make a condo purchase. Next, you’ll need some important items squared away before you can sign on the dotted line: approval from the condo board, Indianapolis Condo Insurance, and financing. In this article, we’ll dive deeper into these three important components.
Condo Board Approval.
Some condo buildings require board approval before a potential buyer can purchase a unit. Applicable federal, state and local regulations against unlawful discrimination are a factor in such board approvals. Some boards ask potential buyers questions about lifestyle, pets and professional background. Condo boards frequently conduct interviews and ask for character references, says SF Gate.
Protecting your belongings in your new condo is the next step in preparing to purchase a new place. However, since you’ll own one unit out of the building, your insurance policy will just cover the walls and fixtures. Some policies cover the wiring in the unit, as well, but the common areas are protected by the HOA dues you’ll pay each month.
Rather than going to any bank and acquiring a loan, condos usually require special financing from the Federal Housing Administration (FHA). However, it’s important to note that some lenders require tedious review of the occupancy rate of the condo building, its operation, and the condition it’s in before approving the loan. Be sure to ask about their stipulations before moving forward on a condo purchase.
About McClain Matthews Insurance
At McClain Matthews, we specialize in providing comprehensive insurance solutions for Indianapolis residents and beyond. For the last 69 years, we have established relationships within our community and pride ourselves on tailoring coverages as needed by our clients. For more information on how we can serve you, contact our friendly experts today at (317) 298-7500.