How to Compare Co-op Mortgages

It is not easy to find a co-operative mortgage lender, since co-op living is not very common in most parts of the US, except for the Northeast, and in some other countries. The system works in deviation from the regular mortgage system. In co-op housing or living, the owner of an apartment buys shares in the apartment building from the company or corporation, which owns the building, instead of buying an apartment directly. Nevertheless, if you are successful in finding a co-op mortgage lender, you can compare them while keeping in mind a number of factors.

Instructions

  • 1

    Lender Reference

    Start with collecting lenders' referrals and then carefully analyzing the data, choose the one who has more experience in co-op lending. Their history should tell you how long they have been operating in the area of co-op lending.

  • 2

    Smaller Institutions

    You should search about each institution online or through other means, and then decide which one better suits your needs. Often, smaller banks, saving and loan institutions offer better rates for specialized products such as co-op financing. So better choose any one of them.

  • 3

    Compare Lending Rates

    One and direct way is to compare the lending rates. Although the co-op lenders will not be in as many numbers as institutions offering other mortgage products, still you compare their rates, one by one. For this, you should do your home work first. Prepare a list of all available co-op loan institutions, see what rates they offer, what are other terms and what are conditions attached. Then study each one of them carefully, and choose the one which is the best suited to you.

  • 4

    Prepare Yourself for Negotiation

    Once you have selected one or two institutions for the lending purpose, prepare a list of questions you might be asked by the lender. Also, prepare a list questions that you would like to find answers of, and ask the lender at the time of appointment. This should clear your concept, and give you an understanding of how the product works. Also, you will have the idea of the associated terms of agreement for the co-op loan.

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