There are some basic beginning steps for buying a foreclosure. These steps are usually overlooked by new buyers interested in taking advantage of a great deal on a home. Foreclosures are enticing because they are often incredibly discounted and so buyers naturally want to go looking at them as a first step.
As a Realtor I find many potential buyers losing out on great deals on homes they love because they failed to get in some preliminary steps before purchase. One important step is to resolve ‘how’ you will buy the home. Will you be paying cash? If so, you will need to present ‘proof of funds’ with any offer.
Will you need financing? Well, this requires getting a pre-approval letter from a lender before an offer can be submitted. If you lack either ‘proof of funds’ or ‘proof of financing’ you will not be able to submit an offer in the Battle Creek or Southwest Michigan real estate market on any foreclosures, as this have become a mandatory requirement from banks and mortgage companies in recent years.
So it is a good idea to have this worked out first. The reason is that there are other people looking at this incredible deal other than you, and if you wait until you see it and love it, the precious time of even a few days to acquire the documentation you need to submit an offer can mean someone else buys if out from under you.
The other important thing a buyer needs in order to submit an offer is funds for an earnest deposit. You need to
present a check for at least $500 on foreclosures in the Battle Creek area for under $100,000. Some banks require $1000 or more, so you will need some cash reserves, even if you have a loan that offers 100% financing such as VA or USDA Rural Development.
So keep this information in mind, and get yourself organized before you go looking, and you stand a better chance of getting a great deal on a home that you love.
For more information on foreclosures and buying a home, contact me through my website at: www.michaeldelaware.com , or call me direct at: 269-441-8182.
I am a local Realtor that sells homes in the Battle Creek area and all over Southwest Michigan and I have sold many, many foreclosures in the last several years.