Whenever a buyer is purchasing a condo, it's important to point out that there will be buyer closing fees on the final HUD-1 that are not on the Good Faith Estimate (GFE), namely HOA transfer fees, HOA dues, HOA working capital, etc.  These fees do not get listed on the GFE because they are not related to the financing of the property, just as the Realtors' commission does not get listed on the GFE.   If the buyer has limited funds, these additional fees can present a problem because the buyer may not have enough money to pay them and still remain within the loan underwriting guidelines.  It's best to contact the HOA management company before making an offer to find out the amount of the HOA fees.  If everyone knows what they are up-front, the financing can be structured correctly and there will be no problems when the final HUD-1 is prepared.

http://www.judesandvall.com

http://www.judesandvallloans.com