The Pros and Cons of Condos

 

Condominiums and townhouses offer an affordable option to single-family homes in most areas, but consider these facts before you buy.

1.    Storage -- Some condos have storage lockers, but usually there are no attics or basements to store belongings.

2.    Outdoor Space -- Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit.  However, if you hate yard work, this may be the perfect option for you.

3.    Amenities -- Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.

4.    Maintenance -- Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you're not home.

5.    Security -- Some condo buildings have keyed entries and/or door attendants.  Plus, you'll be closer to other people in case of an emergency.

6.    Reserve Funds and Association Fees -- Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you're interested in the amenity or not.

7.    Resale -- The ease of selling your unit is more dependent on what else is for sale in your building or townhome section, since units are usually fairly similar.  Single-family homes are usually more individual.

8.    Freedom -- Although you have a vote, the rules of the condo association can affect your ability to use your property.  For example, some condos prohibit home-based businesses.  Other prohibit pets.  Read the covenants, restrictions, and bylaws of the association carefully before you make an offer.

9.    Proximity -- You're much closer to your neighbors in a condo or townhome.  If possible, try to meet your closest prospective neighbors before making a decision.

5 Factors That Decide Your Credit Score

 Credit scores range between 200 and 800.  Scores above 620 are considered desirable for obtaining a mortgage.  These factors will affect your score:

1.    Your payment history...whether you paid credit card obligations on time.

2.    How much you owe.  Owing a great deal of money on numerous accounts can indicate that you are overextended.

3.    The length of your credit history.  In general, the longer the better.

4.    How much new credit you have.  New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

5.    The types of credit you use.  Generally, it's desirable to have more than one type of credit...installment loans, credit cards, and a mortgage, for example.