Posted on: 13th Apr, 2006 12:07 pm
When I approached to purchase a condo, I was asked for a project approval. Now what does it mean by project approval? Who handles this?
Hi Viola,
The lender who will be funding your loan does the project approval. In the process a questionnaire is required to be filled up by either the development's HOA or the property management company.
You may have to pay a nominal fee to the HOA or management company and a bill will be submitted to the escrow. The filled up questionnaire is returned to the lender for a review.
After getting this the lender determines whether the development's legal and financial position fulfills their guidelines.
Hope this information helps.
Regards,
Blue
The lender who will be funding your loan does the project approval. In the process a questionnaire is required to be filled up by either the development's HOA or the property management company.
You may have to pay a nominal fee to the HOA or management company and a bill will be submitted to the escrow. The filled up questionnaire is returned to the lender for a review.
After getting this the lender determines whether the development's legal and financial position fulfills their guidelines.
Hope this information helps.
Regards,
Blue
In some cases, where the development is a sizeable one, the lender may have already lent within it.
In that case he would be having all the essential documentation required for approval on site. Sometimes the title company provides needed documentation for the lender’s review.
In that case he would be having all the essential documentation required for approval on site. Sometimes the title company provides needed documentation for the lender’s review.
Project Approval is the review process goes through out the country in order to insure that the condominium meets the underwriting and lending guidelines of Fannie Mae or Freddie Mac. In future, if a lender is comfortable to lend your owned property then it makes the property much more marketable.