Ocean City Mortgages
A lot of things have changed in the real estate industry over the past few years and one of the biggest changes we have seen is the process for obtaining a mortgage to purchase real estate in Ocean City. Back in 2005 and 2006 if you could "fog up a mirror" you could get a mortgage. This contributed to the artificial run up in real estate prices and led to a considerable amount of the market instability we experienced.
As a result the banks are now making sure that every "i" is dotted and every "t" is crossed. Additionally, a lot of the programs that used to be available such as stated income loans for self employed individuals are now gone. The banks have plenty of money to lend and are eager to do so as that is how they make money, however now they are a bit more cautious and are ensuring that all Buyers are financially fit. This is ultimately a good thing as it will lead to market stability and ensure we don't return to the great recession of the late 2000's.
The key to navigating the mortgage process for buying real estate in Ocean City is finding a competent lender that is familiar with the process. They will be able to prepare you up front for what to expect and will ultimately make your life a lot easier. Buying a second home in a resort community will be a different process than the one you went through in purchasing your primary home. As a result I always suggest working with a local lender whom is familair with the process and its unique nuances.
One of the biggest changes that we have seen over the past few years is the condominium review process. Back in the good old days when you were getting a mortgage for real estate in Ocean City the lender was only concerned with approving the Buyer and quite frankly didn't care where or what you were purchasing.
During the boom years various condominium projects and homeowners associations throughout the country began having financial problems, which ultimately caused problems for the banks. As a result the banks/mortgage lenders now must approve the Buyer as well as the home owners or condo association that the property you are buying is a part of. This is a standard process for every applicant and one that I and all of the local lenders that I work with are familiar with.
A majority of the buildings and associations in Ocean City are well run and "warrantable" as the banks/mortgage lenders deem them. Some of the red flags that banks are leery of are condo projects with a hotel component, condominiums that have a lot of commercial space which the association is dependent upon, buildings with little to know reserves, condo buildings where one individual or group owns a significant portion and a variety of other situations. As an experienced Ocean City Realtor I am aware of which Ocean City condos present challenges and will make you aware of them up front. I deal with the condo review process everyday and once you identify a property for purchase I will oversee this process for you.
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