Purchasing a Foreclosure Property
Some tips to help you through the process...
pre-qualified or pre-approved for a mortgage - Unless you are paying with cash, you need
to know the total amount of a mortgage you will qualify for in order to determine if you
can make an offer on a property. Getting pre-qualified or pre-approved will also help you
to close your purchase deal. The seller will be confident that a lender is committed to
giving you a loan, and will usually accept an offer from a pre-qualified buyer over an
unprepared buyer. In fact, in some cases, HUD pays an incentive to buyers who submit a
pre-qualification letter with their accepted contract.
Pre-qualification also helps you to close your purchase of a property more rapidly. It can often cut weeks off of the time it takes to close on a property, getting you into the house faster. Sellers usually appreciate this benefit too, and factor it into their decision on which offer to accept.
And pre-qualification allows you to identify any problems that may hold up the approval of your loan, like a error in your credit report, early in the buying process. The pre-qualification process allows you to identify and resolve these potential problems early in the buying process.
We can also help with calculating your financing needs. We can calculate the amount of cash you will require at closing, and the total monthly payments required a particular range of properties. We have computer programs that can calculate the settlement fees and the monthly cost of your payments, and taking into account the loan principal and interest, yearly taxes, and other fees. We can also calculate the tax savings associated with deducting the mortgage interest on the property.
Identify the area(s) where you would like to buy a property, then find appropriate houses in those areas on the foreclosure list, and call us. We can put together a comprehensive listing of properties in the selected area. Then drive past your list of homes and determine which ones you want to view. Then call us and we will arrange for entry into the properties. The homes on our list of foreclosures is that these properties are unoccupied, and we have keys that allow us to enter any of these properties. That means that you can get in to view a property at times that are convenient for you.
Before you determine what to offer for a property, we will search the computer records for the prices of other similar properties currently for sale in the area, and a list of similar properties that had sold in the last 12 months. These similar properties are called "comps", and they help you to determine the market price of the property you are planning to purchase. These "comps" are also used in the appraisal that the mortgage company will use to determine the market value of the property.
Work with us to compose an sales contract that will be acceptable to the seller. There are many factors that you will need to consider, and we take the time to explain the implications of each aspect of the contract, and communicate your offer to the seller.
Here are some links to HUD documents that provide more info on the home buying process.
We represent buyers. Let us help you find the best deal!
Major League Properties, Inc.
(410) 336-6005 Voice / (410) 684-3926 (Fax) / Major@hipstuff.com
P.O. Box 123, Linthicum, MD 21090