3. Grade all the homes based on your specific criteria (ie no.of bedrooms, bath, location, square footage, etc.). Schedule an an appointment immediately to view the homes that you are most interested in and that have received your top grade.
4. When you visit the proprety, you and your Realtor need to keep in mind the minimum property standards for your approved financing. For FHA and VA financing any deficiencies dealting with health, safety and structural must be corrected before the property will qualify. For conventionaly financing, the property must receive an average rating from the appraiser. Research the comparables and be prepared to make offers based on the numbers and property condition.
5. Place several offers on homes that you are most interested in. Make sure that all the offers have option periods which allow you to back out of the sale in case more than one offer is accepted.
6. If the property is a short sale, ask if the seller is aware of any needed repairs or has obtained approval from the bank. Inquire if there are any second liens on the property. Required repairs can be a deal killer. If the seller has to obtain approval from both the first and second lien holders, then it will most likely be a long process. Also, if the bank previously approved the short sale, you have a much better chance of closing on the property. Stay clear of all short sales with first and second liens and where approval has not been received.
7. Get your financing in order. Make sure your credit score, job, assets meet the guidelines and keep it that way throughout the entire process. Have all required documentation ready. The days of easy credit are over. Lenders are now scrutinizing every line on the application and want full documentation.
As the November deadline nears, keep in mind that it’s better to wait and find the right property than to rush in simply to take advantage of the $8k tax credit. There are many challenges to finding a bargain property. However, if you follow these recommendations, you will increase your chances of not only winning the bid but getting to the closing table.