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Today’s economy has created a glut of homes in foreclosure. If you are looking for a new home or another property for investment purposes, the foreclosures can actually be a great way to obtain property at a greatly reduced price. Here is a look at the steps you will take when purchasing a foreclosed property.
Visit a bank or mortgage broker and get prequalified for a loan. You will now know exactly what you can afford. In addition, being a prequalifed buyer makes your offer more attractive.
Find a real estate agent specializing in foreclosed properties. You can find these professionals through referrals from family and friends. There are also numerous real estate publications. If you are looking to purchase a government-based property, your agent will need to be FHA-, VA- and/or HUD-certified.
Let your chosen agent know your price range. You should include any property improvement costs.
If you are planning on paying cash for the property, you and your agent should look into real estate auctions.
Starting investing and looking at potential properties. Make sure your agent gives you all the costs that will be involved. Your realtor should also be able to give you comparative sales figures of what other properties in the same area have sold for. Get the possible resale figures as well.
After you find a suitable property, make an offer or bid on the property.
If your offer is accepted, your next step is to have a final appraisal and inspection performed. Your agent should be able to help you find professionals for these.
Engage a title company to perform a title search so you know there are no encumbrances or liens on the property.
