Most buyers who're searching for a property often don't realize that there's a difference between a single-family home and a condo. What are these differences?
A single-family home, in terms of mortgage application, is very easy to finance as it does not have another home connected to it. There’s no other additional fees as there are no other people to worry about. It often has lower interest rates, too. On the other hand, a condo is often attached to other units and display higher risk to lenders. This means the lender needs to not only review the buyers finances but also the condo associations. This review is referred to as underwriting and can be more more work for a condo.
Financing for condos could be more difficult than most people expect. That’s why buyers need to work with good mortgage companies that could make their transaction/process as smoothly as possible.