Getting a mortgage typically involves the buyer and the bank. But when purchasing a condo, loan deals involve a third player, the condo association. The DiMora Team are real estate experts in the Northville and Novi neighborhoods and we know that lenders are stricter when financing condos because the homeowner isn’t solely responsible for maintaining the value of the property. When someone buys a condo, they’re also purchasing an ownership share in common areas ranging from the grounds to shared amenities. These are managed by the condo association, whose officers are elected by fellow residents. Also, homeowners’ dues go toward maintenance and upgrades, as well as premiums on a master insurance policy. Lenders want to ensure those dues sufficiently cover not only routine expenses but also any major outlays for repairs or unexpected expenses, such as a damaged roof. Lenders like to see reserves equal at least 10% of the annual budget. Check out below to see what sold in Kirkway Estates in June 2016:
22532 St. James, Northville: 4 bedrooms, 3.1 bathrooms, 3,317 sq. feet, 3 car garage, Sold Price: $452,000
Kirkway Estates Home Sold
June 2016
51701 Pierce Drive, Northville: 4 bedrooms, 3.1 bathrooms, 3,500 sq. feet, 3 car garage, Sold Price: $622,900
Kirkway Estates Home Sold
June 2016
Another red flag for lenders is when a development has more than 10% of units owned by one investor. If the investor defaults on financing or monthly dues, the condo association’s budget could fall apart. For more information on Kirkway Estates, or similar Northville or Novi neighborhoods such as Bella Terra, Hills of Crestwood and Autumn Park, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.