If a person wants to buy himself a condominium or any townhouse, then homeowners associations fill out the condo questionnaire that the lender requires to process your loan without it then, the lender will not loan you any loan. This questionnaire serves as a very important part of the process as all the things depend on this one only.
What is A Condo Questionnaire?
A condo Questionnaire is a type of document which is required by the lender to give loans to the property holder, which is designed to find the condominium or townhouse. This questionnaire serves as a kind of proof. It is formed when a person applies for the mortgage to the lender, and then the lender sends this questionnaire.
This questionnaire is based on whether the borrower will meet the requirements for the loan or not. It is established by government agencies.
Why Is It Risky?
A condo questionnaire is riskier than a single-family home because the physical location and financial position may change according to the time and development. If other nearby properties have a fall in price then it will affect that property as well, if someone rents their flat then the value of the flats get decreases
What does the Condo Questionnaire ask about?
It asks the buyer about certain things, which are:
1. The basic information about the project such as the project name. The Questionnaire also asks about the buildings or the features of the property.
2. Project: It will also ask you about the project information, whether the project gets completed or not and how many units were sold.
3. Ownership: It asks about the ownership of the condo residents.
4. Finances: lender wants to know about the financial information of the building. They ensure that the borrower will not become bankrupt.
5. Insurance liability – lenders want to know If the property requires any kind of insurance from the risk of hurricanes, floods or anything else.
6. History – the lender wants to know about the history of the property, the new or old or any kind of information which is necessary for the lender.
Following are the things to keep in mind during Condo Questionnaires
1. The Questionnaire is only completed by the member of the association, not by the borrower himself.
2. It always does not offer the same questions to the borrower. But the format of the questionnaires is uniform in nature.
3. You have the eligibility to meet the condo Questionnaire requirements.
Types of Condo Questionnaire
The Condo provides perfect homes for those who don’t want any hassle and it is affordable as well. It is generally of two types:
- Warrantable Condo: A warrantable condo questionnaire is that which is under the guidelines set by the government and it provides loans to the borrower very easily. It ensures that a 10% yearly budget goes to reserve and ½ units should be occupied by the owner.
- Non-warrantable Condo: It considers non-warrantable when the questionnaire doesn’t match the guidelines. Many lenders consider that providing any mortgage to this property is riskier. If the party have any kind of lawsuit then it isn’t warrantable. It will also attract few sellers at the time of selling.
Does Condo Questionnaire affect the buyer?
Yes, the Condo Questionnaire affects the buyer. The Condo Questionnaire is the one who is responsible for financing the mortgage for you. You can’t do anything in between them. The condo development or the lender is responsible for providing the mortgage. They will decide by themselves and informs you whether you passed the Questionnaire or not.
Some of the Condo Development works with the banks also as it is easy to work with the banks and banks don’t need this questionnaire and you can easily secure your mortgage loan.
Conclusion
Condo Questionnaires play a great role in the borrower’s loan during the mortgage as if he doesn’t pass the questionnaire then the lender will not lend any kind of loan to him. Condo Questionnaire helps people to borrow money for buying a flat. This questionnaire is set by the government so there will be no kind of mistakes in it. It provides great services to those who want to buy a flat for their family.
Frequently Asked Questions
- How much does Condo Questionnaire cost?
Condo Questionnaire generally costs from $250 to $300, which the borrower will pay as a fee.
- How much does the Condo cost for the Survey?
The Condo costs $150 to $325 as the fees of the survey which are taken by them.
- What is the purpose of Condo’s survey?
The purpose of the Condo survey is that they want to inspect the conditions and the value which can be obtained from the flat.
