When you are looking to buy your next home, it is always an attractive prospect when you can buy a home at a discount and get a good deal on a home so you move in with instant equity. Home prices are ever-increasing, so buying a home that is owned by a bank or other lender as an REO (real estate owned) property is a good way to buy a home at a discount. But buying an REO property may not be like buying it from the current homeowner and seller. Here are some tips and recommendations to help you buy your next REO property and get a great deal.
1. Hire an Experienced Realtor
One of the first recommendations to help you buy an REO property is to use a licensed real estate agent who is experienced and licensed to work with REO properties. The buying process with an REO property is dealing directly with the lender and their agent, and this can require you to understand the process and the timeline for the transaction. And a realtor who has handled multiple REO purchase transactions is going to be a great asset to your situation.
Your real estate agent experienced with REO properties will also be able to provide you access to search for a property that matches your needs and wants. They will supply you with listings of REO homes in your area and can help you arrange to view each property. They can also help you search for REO properties that are listed through specific lender databases to find the most current information on each property.
2. Get Your Financing Prepared Early
A lender selling a home that has come back to them after the buyer has defaulted on the loan and then the property has failed to sell at auction is going to want to sell the property to an individual buyer as soon as possible. The reason for this is because lenders are in the business to loan money, not to own real estate. Therefore, they will want to sell the property to you as soon as the process can be completed. And an essential step in the buying process, you will need to get your financing arranged so you are prepared to make an offer with a lender on an REO property.
Having your financing set up for processing on a specific home will help you be prepared to get the ball rolling on your financing being approved for the home you submit an offer on. This can also help the process go more smoothly when you have all your documentation submitted to your mortgage broker early on. Then, you can move onto inspecting the property to make sure its as-is condition is acceptable to you. Learn more about your options by contacting companies like @PROPERTIES.