Beware of Lender Questionnaires
Lenders are more cautious to approve a loan prior to a buyer's purchase of a condo unit or the purchase of a home in a homeowners' association (HOA) because ownership and decision making are shared between property owners, which equates to more risk for the lender. To aid in their decision-making process, lenders may utilize a “lender questionnaire” that a property management company or community association must complete and sign. The questionnaire is used to gather additional information about the community association. Examples of items covered on a questionnaire include: what fees or special assessments are charged to unit owners, building insurance utilized, ongoing projects, etc.
