Deciding to become a buyer of real estate?
What we want to do is help you understand the process. This isn’t for those all cash buyers. And yes you can purchase foreclosed properties with a mortgage, unless it’s stated that it’s “all cash”. Now for all cash deals you’ll usually find these properties under $100,000.00, some places could be more. But most of them are under $100k.
For the foreclosure properties that are more than $100k most sellers will allow you to have a mortgage. These sellers can be banks, government agencies, other financial institutions, or individuals.
Buying Real Estate
Here are some of the basic steps that buyers of a foreclosure or non-foreclosure property should follow.
- Check your credit – this should be the first step, because what happens here could kill a deal before there’s even a deal. Most lenders will want to know how credit worthy you are before they even begin.
- Get your financial statements together – most lenders would want your last 2 years tax returns, they might want 2 or 3 months bank statements, and pay statements for the past 3 or more months. Still be prepared to answer questions and present more documents.
- Pre-Approval or PreQualify letter – Which one is the one you want? The pre-approval letter doesn’t mean much now days. The pre-approval letter is the one that you can get online just by answering a few questions, then you’d get an email with the letter attached. Or they just might allow you to print it on the spot. Most sellers, realtors, and financial institutions want to see the pre-qualification letter. The Pre-Qual is usually done when all of the documents are presented, and reviewed. The pre-qual is the one that is going to be requested.
- The search – some people do this before they speak to a mortgage broker or lender. We think that it’s a bad idea to do this before steps 1, 2, 3. The problem is if you do this step first you might find your dream house, your perfect house, the house you’ve always wanted, and then you go through the first 3 steps and find out that you can’t afford it, or you won’t be approved for the mortgage. It’s very easy to find properties using Realtor.com, Trulia.com or local real estate companies. You can do a search using Google.com or your favorite search engine.
- The Realtor – most properties that you find you’ll have to contact a Realtor that would be showing you that property. Most banks, financial institutions, agencies, and individuals have a Realtor that is in-charge of that property. Even with foreclosure properties there might be a Realtor that you must contact to view or purchase that property.
- Finding foreclosure properties – the reason for websites like ForeclosuresAuctions.com and similar foreclosure sites are around is because we try and make the process of locating foreclosure property easy. You can find them on your own but it could be very time consuming.
- Now the fun part – set up the appointment to view the house that you’re interested in, if you like it put in your offer or a contract, give a deposit, then wait. The wait can be within 24 hours or up to 30 days.
- If accepted – your offer can be accepted, not accepted or countered. Once accepted you do your inspection, or engineers report. These inspections will check the plumbing, roof, structure and electrical. This can make or break a deal depending on the condition of the property and/or if you and the seller can come to an agreement on fixing repairs.
- The appraisal – this is the way to find out the value of the house. The property is compared to properties in the area that are listed and closed to determine the mortgage to give you for the purchase, remember the financial institution or mortgage company that you’ll get the money to purchase the property will do an appraisal. The appraisal can come in at the same price of the house, less than the price or even more than the price.
- The closing – this is the end. It’ll be you, the seller or their representative, the attorney, mortgage company, and title company. It can be a combination of those and more. This is the signing of the documents, transferring of title, and arranging the payment. And finally the receiving of the key.
Should you have an attorney?
We at Foreclosures Auctions feel that you should have an attorney to represent you during all real estate purchases and sales. There might be some issues that arise that you might not know how to handle. The attorney also keeps track of all appointments, reports, money and documents. It’s your choice. Check with your start real estate commission to see if they require you to have an attorney.
With the information we provide to our members you’ll get all the details, rules and deadlines directly from the source.
ForeclosuresAuctions – Foreclosures, Auctions, Grants Thank You
We thank you for visiting our site…and we hope that you do join us in the real estate investing circle. We’re the source for government foreclosures, bank foreclosures, auctions, grants, real estate investing and tax lien certificates. We’ve compiled some of the best information on or offline.
Look at what we have to offer. We know that you see that it’s a great opportunity for success in the future. You must give up just hoping and wishing for a change. Take your growth and success into your own hands.
We hope that you join us and grow together.