Also, if the project is very new, ask if yours will be among the first units to close. If you will be one of the first, this can be a problem for lenders, who will face a risk higher than usual. If they financed your loan and your unit closed but the project later failed, they would be left with a useless commodity and no way to recoup their loss. Many lenders want to see at least 30 percent of the units sold or under contract before they will give a financing commitment. Also, be sure to ask if all the common elements of your condo project will be completed by the time your unit closes.
Lenders prefer to see all components that affect the safety and livability of the project completed.
Cosmetics such as wallpaper or carpeting in public areas are not an issue. If an item such as an attached parking garage or an elevator will not be finished, be sure to tell your loan officer so the issue can be addressed prior to closing. A true townhome is treated more like a single-family home and is easier for a lender to verify. When dealing with a condo loan, lenders also have to examine the reserves put up by the developer, the insurance on the structure and the fidelity bond that covers the board of directors of the condominium association. Lenders also need a copy of the condominium documents.