Is It Better to Take Out a Loan on a House or a Condo?
If you are looking to take out a loan for a new property, it can be overwhelming. After all, a loan on a house or a condo can be a great decision. However, it is crucial that you evaluate the pros and cons of each. That way you can get the loan for the type of home that suits your family’s needs. Here is what you should consider when embarking on this decision:
Your Credit Situation
Having improved credit is a huge boon for your finances in general. The first thing you should look at is your current FICO and credit score. This will help determine which kind of properties you are most likely to qualify for.
For instance, condos often have a higher credit requirement. Of course, that is in order to qualify for better loan rates. At the same time, homes can have higher rates and requirements depending on the area. The best course of action is to do plenty of research. That way you have a clear idea of exactly what you are getting.
Do You Love It?
You should your new home. No matter whether you are leaning toward a condo or a home, this is a place you should have very positive feelings about. You should be able to imagine yourself living there, day in and day out. You don’t want to compromise on such an important decision.
So if you find that one property is a bit more expensive, or more out of the way, than another one, don’t be discouraged. It is entirely possible that the enjoyment you get out of the home will outweigh other factors, such as:
Sometimes, a condo is located in an ideal location for you. You might love the weather, the neighborhood, the shop nearby, and more. However, sometimes your dream home is located right in the middle of nowhere. Sometimes, location is more important than other factors.
You need to take a look at your lifestyle to determine if location is the most important factor. You might love the location but detest the paint color, for instance. This is something minor that you can fix. However, if you just can’t see yourself living in that neighborhood, then you know it’s time to look elsewhere.
Do You Need a Yard?
One of the biggest aspects of your decision you will need to consider is whether or not you need a yard. A condo will typically not have a yard. Homes typically do. Whether this is a deal breaker for you will be determined by your preferences or lifestyle needs.
For example, if you have children or pets, then you will want them to be able to roam in the yard and play outside. This might also be true if you plan on entertaining often. Condos can often provide spacious interiors. However, for some people this is a deal breaker. So be sure to ask your agent about the yard and its size before moving in.
Know The Area
When it comes to finding the right home, there is not just the location itself to consider. Sure, this is an important aspect. However, if you want to be downtown and you find a house or condo near there but the immediate neighborhood is dangerous, it might not be such a great deal.
Be sure to do your due diligence before agreeing on a new home. Scout the area yourself. Spend a few hours at least walking around the area, going to the public amenities, and even chatting up some of your potential neighbors. Also, if you are unable or uncomfortable with doing this in person, Google Maps is a great resource to scout neighborhoods in advance.
One of the key difference levels in houses and condos is the amount of maintenance they require. If you are someone that doesn’t see yourself doing a lot of maintenance, then a condo can be a perfect option.
On the other hand, many people love the idea of getting their hands dirty. They enjoy working in the yard, planting their garden, or cleaning up leaves. You have to go with what your personality is.
When it comes to getting a loan for your new home, you don’t have to stress. A loan on a house or a condo is easy when you have the right help. You just need the right criteria to make your decision on. You also need professionals you can help you every step of the way so you avoid common pitfalls. That’s exactly what you get with us.
At St. Charles Mortgage, we specialize in helping homeowners just like you. Get in touch with us today so we can help you find and afford the home of your dreams. Follow the link to learn how a Mortgage Broker Can Help You.