THE TOP 5 THINGS TO KNOW WHEN BUYING A BANK OWNED HOME

I receive quite a few questions regarding how to make an offer and how to purchase a "Bank Owned" home. Today i was called by a reporter writing a story asking me to single out the most important thing to know when buying a bank owned home.
 
I began by saying there was not just 1 item but a list of 5 items that are all as important as any one of them.

MY TOP 5 THINGS TO KNOW WHEN BUYING A BANK OWNED HOME

1. GET PREQUAILIFIED Prior to making an offer get pre-quailified with a local and trusted loan officer. No bank will look at your offer without it. A pre qualification looks at your credit score, your income and liabilities you state and will give you a sales price range you should be searching in.

2. KNOW WHAT TYPE OF MORTGAGE YOU ARE GETTING. You need to know if the house is in a condition that that will be accepted by the bank for that type of mortgage. For instance with a fha loan, the house can not have any damage or need any repairs.

3. BEFORE YOU MAKE AN OFFER make sure when you walk through the house you are looking at everything from top to bottom. Most bank owned homes are sold "as is" and you only have 1 chance to ask the bank to fix or make your offer reflect anything you see during your showing. A bank usually will not renegotiate after accepting your initial offer.

4. MAKING AN OFFER. When making an offer it is best to make your best offer up front. Set your closing date no more than 30 days from acceptance. Make sure your deposit is at least 1% of the sales price and in the form of a cashiers check. Do not add any contingincies other than obtaining a mortgage and 7 days for a home inspection.

5. TIME. Make sure you have time and patience. Although most of my banks will answer an offer within 24 hours, some banks or listing agents will take 3-7 days to answer your offer. Ask up front what their time frame usually is.

In Conclusion all 5 items are just as important to be reviewed. Having a buyer broker who is experienced in bank owned homes can sure make the buying process easier. Please feel free to contact me with any questions you may have.

Updated Dec. 30, 2010

Blog Written by:

Scott Godzyk
Owner/Broker
Godzyk Realty Group

One of New Hampshire's Leading REO Brokers

www.ScottSellsNH.com

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