Real Estate

Buying condo assignment - financing requirement

  • Last Updated:
  • May 1st, 2019 2:10 pm
[OP]
Sr. Member
Nov 25, 2008
700 posts
31 upvotes
edmonton

Buying condo assignment - financing requirement

Hi i may consider purchasing condo assignment, on the agreement, it said "assignee agrees to provide mortgage pre-approval or other wealth report "
typically is preapproval really the ONLY thing needed ?
Or i have to really go to bank to truly get mortgage approved , as part of keeping buyer satisfied ?

also , say agreement is signed from both parties, is it too late to go quickly get mort preapproval within next week ?
Thanks
t
8 replies
Deal Addict
Apr 14, 2017
1967 posts
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DT Calgary
Do you have enough cash to pay for the deposit and profit? Banks really don’t like assignment sales.
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Mar 23, 2008
11906 posts
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Edmonton
love0715 wrote: Hi i may consider purchasing condo assignment, on the agreement, it said "assignee agrees to provide mortgage pre-approval or other wealth report "
typically is preapproval really the ONLY thing needed ?
Or i have to really go to bank to truly get mortgage approved , as part of keeping buyer satisfied ?

also , say agreement is signed from both parties, is it too late to go quickly get mort preapproval within next week ?
Thanks
t
Do you have a lawyer putting this together? You're better off getting actual advice on the situation.

As far as getting pre-approval, just get it done ASAP. The longer you delay, the greater the likelihood it bites you in the tush.

C
[OP]
Sr. Member
Nov 25, 2008
700 posts
31 upvotes
edmonton
I surely have enough for deposit /profit. Its just the timing issue . What happened was that i applied HELOC early last week, submitted all required docs, i am told "it will be done in 10 days" but do not know exact date when i will get approved.
I am sure i will get approved , just matter of when .

Now with my condo assignment agreement settled on price (which is giving me 10 banking days to provide "mortgage preapproval or other wealth report" ) , i am thinking i cannot guraratee to provide HELOC approved doc, ( i do not wanna inform buyer i have trouble , so i said nothing )

i am thinking if i quickly this week go out other bank to get mortgage preapproval (which was mentioned on agreeement) , to satisfy the agreement requirement.

Just do not know if buyer also look for real mortgage approved.
Deal Fanatic
Mar 27, 2004
5107 posts
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Toronto
You need a letter from your mortgage person stating you can afford the property.
Full-time Realtor
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Mar 23, 2008
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love0715 wrote: I surely have enough for deposit /profit. Its just the timing issue . What happened was that i applied HELOC early last week, submitted all required docs, i am told "it will be done in 10 days" but do not know exact date when i will get approved.
I am sure i will get approved , just matter of when .

Now with my condo assignment agreement settled on price (which is giving me 10 banking days to provide "mortgage preapproval or other wealth report" ) , i am thinking i cannot guraratee to provide HELOC approved doc, ( i do not wanna inform buyer i have trouble , so i said nothing )

i am thinking if i quickly this week go out other bank to get mortgage preapproval (which was mentioned on agreeement) , to satisfy the agreement requirement.

Just do not know if buyer also look for real mortgage approved.
Are you buying the condo with a HELOC on another property? I'm confused...

C
[OP]
Sr. Member
Nov 25, 2008
700 posts
31 upvotes
edmonton
CNeufeld wrote: Are you buying the condo with a HELOC on another property? I'm confused...

C
i applied for HELOC, and used the $ out of HELOC to purchase this condo assignment
Deal Guru
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Mar 23, 2008
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love0715 wrote: i applied for HELOC, and used the $ out of HELOC to purchase this condo assignment
So you have an existing property that you've applied for a HELOC? And that money is going to be used to purchase the condo in it's entirety, or are you going to need to get a separate mortgage for the new condo? Or were you just going to use the HELOC for the assignment portion (seller's deposit + their markup)?

This is where I'm confused, but I've never bought a condo on assignment or otherwise... But you can't get a mortgage or HELOC on the new property at this stage no matter what (presuming it's not physically built yet). So they must be asking for mortgage pre-approval for the entire condo purchase, or you must somehow demonstrate that you have the wealth to back up the entire purchase without a mortgage (via the "wealth report"). A HELOC with enough room for the entire purchase would likely satisfy the seller as far as a "wealth report" (bank or investment statement with enough funds to cover the entire purchase price).

Seems weird that they are concerned about your ability to get funding for it, as it's not the seller's concern if the sale falls through later. But it's perhaps a condition of the builder before they'll allow assignment to someone else, same as they'd require for a buyer off the street. Which again, they're not concerned about whether you have enough money for the deposit; they want some form of protection that you have a likelihood of completing the entire transaction.

C
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Dec 16, 2015
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love0715 wrote: i applied for HELOC, and used the $ out of HELOC to purchase this condo assignment
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