With all the bank owned properties out there, is this the right market for you?
I deal with alot of bank owned homes throughout New Hampshire. The basic premise though will appy to anywhere in the USA as all banks virtually operate the same way.
Where to start?
The first thing you need to do is be pre-approved for a loan. No bank will look at your offer without it. There is a difference between prequalified and preapproved. A pre qualification looks at your credit score, your income and liabilities you state and gives you a sales price you should be searching in. however a pre-approval will confirm you are able to get the loan by verifying your income, assetts and liabilities.
What is being sold "as is"?
The second thing you need to know is the house you are buying is sold "as is". It means the bank is not making any warranty, guarantee or disclosure on anything in the home.You should know that the home is sold as is, so dont ask the bank to fix anything or it could cause your offer to be rejected.
The inspection process
The third thing you should know is some banks will let you have an inspection however they will not renegotiate the price after the inspection. You shoud inspect the property before you put in the offer. If you dont want to spend the money for some reason, then when looking at the home you are going to need to look at the well, septic, roof, siding, windows, heating system, look under the sinks, in the basement for signs of water or mold, stains on the ceilings and anything that sticks out or if you are getting an fha loan, any safety issues.
EMD: known as the Earnest Money Deposit:
Fourth is your deposit, it should be in certified funds and should be at least 1% of the sales price. The higher your deposit, the better your offer will look.
How long does it take?
Fifth is to be prepared for the bank to take time to answer your offer, to get you the signed purchase and sales and make sure the foreclsoure deed is complete and recorded, otherwise this could hold up your closing.
Closing the sale:
Lastly is time. you should be prepared to close within 30 days of the accepted offer.
Good luck to all and remember if you have any specific questions, please feel free to contact me through my web site. i have placed some more great tips and a link to search through foreclosed homes here in New Hampshire.
Updated oct. 15, 2011
Blog Written by:
Godzyk Realty Group
One of New Hampshire's Leading REO Brokers
Trulia's #1 Agent in New Hampshire
Ranked the #5 Trulia agent in the USA
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