Investing in Downtown San Diego condo is like having a luxurious palace without worrying about its maintenance.
Forget about the tireless hours you spend cutting the lawn, or the evenings you missed out on your favorite series because you had to clean the pool or even those tiring weekends when you missed catching up with your friends’ due to the pending garden maintenance. Yes, because once you invest in a condo, all this is taken care of for you. Not to mention you’ll be close to endless shops and entertainment! We know downtown condos are an incredible lifestyle.
We are always trying to help our clients find the condo of their dreams. Although dealing with any real estate can be a daunting task, we have sought to make this process a little easy for our investors:
Prepare your Pre-Qualification
As you check your wallet before going out shopping, you need to review your financial status before you hunt for a condo. Calculate the cash you have in hand and the mortgage you may need, thus, defining your overall budget. Here is an easy calculator that simplifies this task. It is essential that a buyer gets qualified for loan application before anything else.
Search for a lender. Consult them about the type of mortgage you would need. You could also check your qualification for government-backed loan viz. Veteran’s Administration (VA) or Federal Housing Administration (FHA) loan.
After you have found the lender get your pre-approval letter. For this, you need to have a clear understanding about their formalities, documents needed and other terms and conditions. The letter helps you solve the credit score issues, if any, and can sometimes help in negotiations. A buyer with pre-approval letter commands priority and attention from the agents and sellers
Beginning the Hunt
To begin the condo hunt, invest in an agent who would handle all the complications and tedious tasks in your hunting process. Managing it all on your own is not recommended because an FHA approved lender must submit condo approval. Therefore, it cannot be done by an individual.
List your requirements for your agent. Do you prefer city lights to enjoy nightlife or a serene view of the bay? Would you desire restaurants nearby, adjoining shopping plaza, or fitness park at a walking distance? Flexible with the number of bedrooms but no compromise on the garage, or 3 bedrooms with a swimming pool is a mandate? Analyze all the possibilities and inform your agent of both needs and wants. Have a look at the list of all downtown districts that provide you a summary of lifestyle at each of the area.
Once your agent provides you a list of condos that fit your lifestyle, take a virtual tour of the properties first (example). Next, go with your agent to visit the finalists. Do you really think this is what you dreamt of? If the answer is no, continue the hunt.
Striking a Deal
Bravo! You have zeroed down on one. But it isn’t done yet. Check the prices for similar condos in the neighborhood, analyze the market, the number of days the property has been on the market, etc. Consider all the possible factors and then finalize the buy price.
Submit an offer to the seller with the help of your agent and determine a closing date. This could be anywhere between 30 and 45 days from when the offer is accepted.
Once the offer is accepted, the escrow process starts. (Note: An escrow is a financial arrangement where a third party exchanges the money for the property between the buyer and seller). The California real estate law states the buyer should make a deposit of around $2,000 into an escrow account. A property inspection will have to be scheduled within 17 days. After this, you will need to remove the contingency. In the case of any discrepancy, you can get your deposit back and cancel the contract during the contingency period.
If everything works well, obtain the HO-6 policy (the form used for condo insurance policies). Most lenders call this a “wall policy” and require it to cover at least 20 percent of the condo’s appraised value.
Now the buyer needs to deposit the amount of the purchase price into the escrow. The escrow company transfers your funds to the seller and the keys to you.
If you are planning to buy a condo, and looking for a qualified agent, contact Claudette Cooper at (619) 344-8538 today for a free consultation!
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