Do you need a good credit score to get a mortgage? There are more things to consider when thinking about how to get a mortgage. Tony Jao, a mortgage lender, shares more about credit scores. Once the board has all the necessary info and reviews your package, they can accept or deny you at their discretion. These tips will help you prepare for a co-op board interview. And the board might ask for even more information. They may want to see more available cash in the bank, some letters of recommendation, or additional employment verification. First, you need to get your mortgage approved by a lender. The process is similar to that of a condo. Afterward, you must present that approved mortgage package to the co-op board. On the other hand, a co-op requires a little more convincing because, as mentioned earlier, it’s a cooperative. Put simply, once your lender approves you and the condo seller agrees to sell to you, congrats: you’re a condo owner! And you have to present the typical mortgage package to your lender, including the mortgage questionnaire, insurance info, financials, and a budget. Let’s talk condos first. Generally, a 20% down payment is the minimum. The mortgage lender must approve the borrower No one wants to get involved in ongoing litigation since cases can quickly drain financial resources. If the building is involved in multiple lawsuits, that’s a big red flag for a lender.The lender may require two years of the co-op’s tax returns and bank statements, showing available reserves. If the co-op’s financial statements aren’t up to snuff, that could make a lender nervous too.What if that person gets into financial trouble and can’t pay the dues for the building? That could be detrimental to the co-op’s financials. If one person in the co-op has too many shares, that could make the bank uneasy. ![]() When it comes to getting a mortgage, co-ops present even more challenges, mostly because there are more reasons for co-op buildings to be considered non-warrantable. New construction is an example, if the building is not complete or too many units are investment properties. On the flip side, some condos are non-warrantable, which means they don’t meet all the lending requirements. The mortgage lender must approve the buildingĬondo buildings are generally easier for lenders to approve if most of the buyers in a building are using their units as primary residences. If you’re wondering how to get a mortgage for a co-op or condo, the most significant need to know is that the two main entities need approval during the mortgage process: the building and the borrower. Tony Jao, a mortgage lender, shares more about mortgages from preapprovals to closing costs.
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