3 Financing Mistakes in St. Armands
Avoid These Costly Financing Mistakes in St. Armands
Quick Answer
Three common financing mistakes in St. Armands can derail your real estate deal: ignoring condo association approvals, underestimating insurance costs, and failing to secure a solid loan pre-approval. Florida Statute 718 governs condo association processes, and failing to get timely approval can lead to contract termination. For example, missing an association approval could mean losing a $20,000 deposit. If discovered late, these issues can delay closing or even cause the deal to fall apart. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
What Actually Breaks Deals in Florida
Ignoring Condo Association Approvals
The problem often starts with overlooking the need for condo association approval, which is governed by Florida Statute 718. In one instance, a buyer was ready to close when they found out their application was still pending due to missing documents. This oversight resulted in a two-week delay, jeopardizing their financing terms and risking a $15,000 deposit. The consequence is severe: without approval, the deal can’t proceed, and the buyer could lose both time and money.
I had been looking for a local condo for over a year and was very unhappy with the service. I had worked with three agents from three different national chains. None of the three seemed to know the market very well, took the time to understand what I’m looking for, and most importantly rarely followed up when they told me they would. I have never experience such a lazy approach to working with a buyer. Things changed when I met Mike and part of his team at their St. Armands office. The first thing Mike did was apologize for the poor service…even though it wasn’t his fault. I already knew that I found someone who help himself accountable. What a breath of fresh air! After spending about 30 minutes with me understanding what I was looking for, Mike introduced me to Eric. Between the two of them, they found five condos for me to look at. Each of the five, met my criteria. They actually did listen. I’m excited because we plan to submit an offer later today. The market analysis they prepared was thorough and easy for me to understand. I cannot recommend more highly any other realtors to work with. Thank you Mike and Eric!
– Jules Schroder, Google Review
Barrier-island insurance behavior in St. Armands can be unpredictable and costly. During underwriting, a buyer discovered their insurance premium had doubled due to new flood zone assessments. This unexpected increase forced them to renegotiate the terms of their loan, risking the entire transaction. If insurance costs are not accurately estimated upfront, buyers may face last-minute financial shortfalls or even contract termination.
Failing to Secure Loan Pre-Approval
Lender underwriting systems require thorough documentation and verification. A buyer once assumed their finances were in order, only to have their loan application denied during underwriting due to an unreported debt. This denial not only delayed closing but also required the buyer to bring an additional $30,000 in cash to keep the deal alive. Without a solid pre-approval, buyers risk losing their dream home and their earnest money deposit.
Where It Usually Blows Up
These issues typically surface during the final stages of the transaction, such as underwriting or just before closing. This timing is brutal because buyers have already invested significant time and money, making it difficult to back out without substantial losses. When these problems arise late, buyers can lose deposits, face renegotiation of terms, or even see the entire deal collapse.
Mike & Eric have been completely amazing through our entire condo buying process! From the very beginning Mike was attentive and quick to respond to our needs. We were in Longboat Key for a short weekend and the listing for a condo we were interested in came up on a Sunday and we were leaving Monday. Mike promptly returned our call and set up an appointment to see the condo that same day. We made an offer and Mike and Eric walked us through the process every step of the way. Of all the homes we have bought this was truly the easiest journey through home buying that we have ever had. We have recently closed and Mike and Eric continue to assist us by keeping an eye on our condo as we can’t be there all of the time. They have recommended contacts in the community to help us through the move in transition as this can be very tricky with a second home long distance. We cannot say enough about their professionalism, expertise, efficiency and kindness. We would highly recommend Team Renick to anyone for their Real Estate needs.
– user865466, Zillow Review
What I Tell Clients Before They Risk Money
- Verify Condo Approval Requirements: Always check the condo association’s approval process and timeline before making an offer.
- Get an Accurate Insurance Quote: Obtain a detailed insurance quote early to avoid last-minute surprises.
- Secure Loan Pre-Approval: Ensure your financial documentation is complete and accurate to avoid underwriting issues.
- Review Flood Zone Maps: Check the latest flood zone maps to understand potential insurance implications.
- Understand Deposit Risks: Know the conditions under which your deposit could be forfeited to protect your investment.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
Call 941.400.8735 or Schedule a Call
Questions Clients Actually Ask
What happens if my condo association approval is delayed?
If your condo association approval is delayed, it can postpone your closing date and potentially void your contract. Florida Statute 718 requires condo associations to approve new buyers, and missing this step can lead to losing your deposit and the property.
How can unexpected insurance costs affect my deal?
Unexpected insurance costs can drastically alter your financial calculations, leading to potential renegotiation of loan terms or even contract termination. For example, if your insurance premium unexpectedly increases, you may need to bring more cash to closing or risk losing the deal.
Why is loan pre-approval so critical in St. Armands?
Loan pre-approval is crucial because it verifies your financial ability to purchase the property, preventing last-minute underwriting denials. Without it, you risk losing your earnest money deposit and the property if your loan application is denied late in the process.
What To Do Right Now
Request a detailed condo questionnaire from the association to understand all approval requirements and timelines.
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