The Reality of Residential Lending
As I have discussed lately, as a result of stricter lending guidelines, getting a loan for the purchase of a co-op or condo has turned into a cumbersome, complicated process with unexpected twists and turns for all concerned. Banks have become skittish about the financial wherewithal of the buildings in which the apartments are located. Maintenance reserves, insurance coverage, liability for litigation, owner occupancy and a variety of other matters are reviewed by the lender before they will approve the co-op or condo. I sat down with Jill Urban of NY 1 to discuss the co-op and condo conundrum as well as what buyers should expect when they apply for a loan.