Buying a condo in Arlington - where to start? (Alexandria: real estate, renting)

[awabbit]

I am looking to buy a condo along the orange line in arlington. I've been renting around the area for a few years, and want to buy my first place.

I have enough saved for a sizable downpayment but will need a loan for the other 60-70%. Anyone know how to find a lender for condos in the area? Or suggestions on how to find a real estate agent. I've heard that you need a lender before you get an agent, is that true?

Thanks in advance, for any advice.

[spencgr]

Originally Posted by awabbit

Anyone know how to find a lender for condos in the area?

Um, any bank, credit union, or mortgage broker will do. Compare rates and terms.

"How to find?" - Let your "fingers do the walking", 21st century-style, by Googling lenders.

I'm a little concerned that you may not be mature enough to purchase a home if you have no idea how to even find a lender or an agent.

[boyd888]

Also realize that a decent condo along the orange line in Arlington is going to run you $350k+ which means a down payment of $75K+.

[awabbit]

Originally Posted by spencgr

Um, any bank, credit union, or mortgage broker will do. Compare rates and terms.

"How to find?" - Let your "fingers do the walking", 21st century-style, by Googling lenders.

I'm a little concerned that you may not be mature enough to purchase a home if you have no idea how to even find a lender or an agent.

I was looking for suggestions other/more specific than googling. I am just starting the process and wanted to start the thread without bringing what I already found into it, for an open perspective. Sorry, if that came across as me not have done any research before.

Not all banks lend for condos, so I know it's not quite that simple. Even for a conventional mortgage, which I am looking for. I was wondering if anybody had any specific lenders that do business often in the area.

[awabbit]

Originally Posted by boyd888

Also realize that a decent condo along the orange line in Arlington is going to run you $350k+ which means a down payment of $75K+.

Understood

[kww]

Originally Posted by awabbit

I've heard that you need a lender before you get an agent, is that true?

Not necessarily true, but some agents might not want to show you around without having an idea of your purchasing power.

In addition, it's good IMO to be pre-approved prior to looking as it might be a day or two before you can get a pre-approval letter from a lender, possibly hindering your ability to get an offer in (as in this area, pretty much every offer will require a pre-approval letter (or proof of funds for cash transaction) to be included.

Originally Posted by boyd888

Also realize that a decent condo along the orange line in Arlington is going to run you $350k+ which means a down payment of $75K+.

while 20% is the best option, not everyone can (nor will want to) put that much down. Lenders nowadays can offer conventional mortgage products with as little as 5% down.

Originally Posted by awabbit

Not all banks lend for condos, so I know it's not quite that simple. Even for a conventional mortgage, which I am looking for. I was wondering if anybody had any specific lenders that do business often in the area.

I've never encountered a lender that couldn't loan on a condo.. The thing to look out for is whether the community will qualify for conventional/FHA/VA financing period, as delinquency ratios/investor concentration/etc might not be favorable.

You most likely will not uncover whether a community will qualify for conventional financing by looking at the various online sites (or MLS listings that your agent may provide), but, should you narrow in on a neighborhood or two, the listing agent for those homes might be able to shed some light about financing restrictions (keep in mind, these financing qualifications can change daily). Your lender will order a condo questionnaire once you go under contract to verify the community is "healthy enough" for them to back a mortgage.

If you are already settled and working in the area, ask coworkers for lender recommendations, friends/family that might have recently purchased or refinanced, or stop in your local branch to see what options they might offer.

[Carlingtonian]

I would second everything KWW said above. Your search will be easiest if you know you're pre-qualified up to a certain amount.

An average condo around here is 400-600K. If you've saved 60%-70% of that, then you won't need an FHA loan, which will make you pay for mortgage insurance in exchange for putting down only 3.5%.

As to a lender: We recently refinanced with HomeFirst Mortgage of Alexandria. Truly outstanding service (and a great rate) from Greg Kundinger, the firm president. He lives in Arlington as well.

As to an RE agent, that's tougher. You could go without and, once you find a place you want to buy, see if the seller's agent will act as a dual agent, if the seller will let them. This is a terrible idea for the seller, but it'll definitely benefit you in that the realtor will have much more to gain if you're chosen as the buyer.

[kww]

Originally Posted by Carlingtonian

I would second everything KWW said above. Your search will be easiest if you know you're pre-qualified up to a certain amount.

An average condo around here is 400-600K. If you've saved 60%-70% of that, then you won't need an FHA loan, which will make you pay for mortgage insurance in exchange for putting down only 3.5%.

As to a lender: We recently refinanced with HomeFirst Mortgage of Alexandria. Truly outstanding service (and a great rate) from Greg Kundinger, the firm president. He lives in Arlington as well.

As to an RE agent, that's tougher. You could go without and, once you find a place you want to buy, see if the seller's agent will act as a dual agent, if the seller will let them. This is a terrible idea for the seller, but it'll definitely benefit you in that the realtor will have much more to gain if you're chosen as the buyer.

IMO, risky from a buyers perspective, moreso a first time homebuyer. Losing the guidance/advice from the agent (once dual agency is introduced) could spell trouble for someone that doesn't know what to look out for.


But I agree that the agent would surely love the opportunity to rep both sides, and as such, might work a little harder to keep a deal from falling apart (while simultaneously walking the fine line of breaking fiduciary duty to either/both clients).

[IronCat]

Wow, some unnecessarily rude responses above.

I have recommendations to share. Lisa DuBois is my amazing realtor. http://www.chrissyandlisa.com/ I could go on and on about why she is so great. She is very knowledgeable about the orange line corridor, as she used to live there. She is very pleasant to work with and very professional. She is a total go-getter and anticipates your questions/concerns before you articulate them.

As for lenders, I personally like Tim Dagata at Presidential mortgage. Tim Dagata - Presidential Mortgage That said, there were some issues (I hear they have since been resolved) with refinancing my Clarendon condo and the lenders at George Mason were recommended to me. I wasn't thrilled with my experience with them but they got the loan through.

I would say figure out which area of the orange line appeals to you most and narrow it down. You will save yourself a lot of time and energy if you know you are willing to pay extra for Clarendon or if you want to get more bang for your buck in Ballston.

One final note is to avoid the realtor (his name escapes me at the moment) who has the Orange Line Living blog/firm. He is very shady. I've heard a number of different stories that concern me. Call Lisa. You will be happy. 703-350-9595.