How to Buy Bank-Owned Homes in Ohio
Buying a bank-owned home is a great way to find a bargain in today's real estate economy. This is especially true in Ohio, where the number of bank-owned homes has tripled in the last few years. Working with banks is different than working with private home-sellers, so knowing the ropes is crucial to closing the deal.
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Procure Financing or Cash Availability
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In order to buy a bank-owned home, you must first have ready availability of funds. Most banks will not even entertain an offer until they have proof of your funds or a pre-approval letter from a mortgage lender. If you have cash to purchase the home, have your bank write a letter stating that you have the funds to purchase the particular home in which you are interested. If you need pre-approval, work with a mortgage lender to become qualified. The lender will provide you with a letter once that has been accomplished.
Write and Submit an Offer
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It is best to use a licensed Ohio realtor whenever possible, because he or she knows the procedures and can save you a lot of time and headaches. Write up your best offer, because banks often look at several offers simultaneously. Determine your purchase price, closing date and if you will require a home inspection. Banks look at all these offer items; often it will be the terms that cause an offer to fall apart.
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Use a Reputable Title Company
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Purchasing a bank-owned home can be tricky, because it does not come with disclosures, unlike a private home sale. Use a reputable title company that will complete the title search on the property. You will want a free and clear title that has no attached liens. A reputable title company will also get the job done quickly and will work in conjunction with both your realtor and mortgage lender to complete the task. Banks don't always move the quickest, but they expect everyone else to be ready when they are.
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References
- Photo Credit house image by Cora Reed from Fotolia.com
