Condo Deal Check: How Realtors and Buyers Can Screen a Condo Before Making an Offer

A few days ago, I got a text from a past client. I closed condo purchases for both of his parents, and now a friend of his is under contract on a condo of her own.

Her lender is pushing back on the condo project. She may need a non-QM loan, the kind that can make exceptions for things like insufficient master insurance or an HOA budget that does not meet guidelines. He wanted to know what the rates look like.

Think about where she is right now. If the lender is raising concerns about the condo at this stage, she has most likely already paid for the HOA application, a condo questionnaire, an appraisal, and an inspection. That can easily add up to more than a thousand dollars.

And now she may be facing a different loan, possibly at a higher rate, while her contract deadlines keep running. No one confirmed whether the condo could actually be financed before she made the offer.

Compare that to a condo loan I have getting ready to close right now. The only condition left is confirmation from the insurance agent that the master policy covers 100 percent replacement cost.

We are at that point because we did the due diligence on the project before my client ever wrote an offer. That is how I protect my clients.

And that is why I built Condo Deal Check. So I can offer that same review to more realtors and buyers, and save you time, a lot of money, and a lot of frustration.

Here is how it works. Open the tool and enter the project name and address, the total number of units, the expected application date, whether the units are attached or detached, and how the buyer plans to occupy it.

Remember, the unit count is the whole project, not one building and not one phase.

Then work through the questions that move a condo file. Master association, reserves and budget, master insurance and HO-6, deferred maintenance, and litigation.

If you do not know an answer, select Not sure. That is a follow up question for the listing agent or the association, not proof the condo is ineligible.

Next, check off the documents you have and drag them into the upload area. Condo and HOA documents only, nothing belonging to the buyer personally.

Leave your name and contact information and submit. I review everything and come back with a plain English read on what could affect financing, what loan options look available, and which documents are still missing.

This is an initial project screening. It is not an approval, not a denial, and not a commitment to lend. Final eligibility depends on the complete documentation and the lender's requirements.

Realtors, run it with your buyer before the offer, not after the appraisal. Buyers, send me what you have. Let's find the problems while they are still cheap to walk away from.

I'm Todd Hanley, Senior Loan Officer with United Direct Lending and Mortgage Broker. If you'd like a transparent, data-driven process that removes the guesswork, I'd love to speak with you today. Thanks for watching.