"So You Want to Buy a Shore Property in Ocean City"
There were five earlier blog postings on this topic. Please visit my Active Rain account at www.ActiveRain.com/DustinAPeters to review the earlier blog postings.
The topic of this blog is ... finding the right mortgage vendor.
Unless you are a "cash buyer," you will need to obtain a mortgage loan for a certain amount of money in order to make the deal. Now not all mortgage vendors are the same ... just as not all lending institutions are the same. The absolute best advice that I can give you is that you should deal with local mortgage vendors in Ocean City, NJ. Now that does not mean that you will be only working with people in and around Ocean City, or with smaller companies. What it means is that if you work with people who have made lots of loans dealing with Ocean City property they will understanding the order of things around this community.
The best way to explain this would be to talk about "land value" here in Ocean City. In almost all cases, the land value will be higher than the building value throughout Ocean City. If you look at single family sale listings, the land value of a 50x100 lot (one of the larger ones), and about a five-minute walk to the beach, will be in the $700,000 plus figure. Recently, a 65x100 with potential ocean views but about a street back from the beach which was then across the street was well over $1 million.
Condominium sale property divide the land value by two when you have a first and second floor unit on the same total land. Depending on the building size, the land value still is generally higher (using only half of the land value) than the building value.
That land factor alone can cause a lot of misunderstanding if you deal with a mortgage vendor who is not aware of that at all. Obviously, land size (much smaller at the shore on an island) would also be a factor that may not be understood.
So an organized agent will have three-to-five mortgage vendors available for you with phone numbers and emails so that you can make some contacts regarding a mortgage. Often it is useful to talk with some of these vendors before making an offer on a particular sale property. A critical factor in obtaining a loan is that the bank will always want to have an appraisal of the particular sale property to determine value. If this doesn't work out, they may not be willing to make the loan for you.
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