Buying a flipped home is exciting. It’s also one of the biggest investments you will make in your lifetime. For this reason, it is important to educate yourself on what all is involved and how to be prepared when you buy a flipped home.
? What Credit Score is Needed to Buy a House
The first step you need to take when you’re considering the purchase of a home, is to look at your credit report. Lenders are going to pay attention to your credit score. It is only logical that you know what your credit score is before lenders begin looking at your credit. If there are negative items on your credit report that are having a large impact on your score, you’ll want to correct them. Items which have a significant impact on your credit score are:
- Missed Payments
- Credit Utilization
- Defaults and Bankruptcies
You need to look over your credit report because there’s a good possibility there are mistakes and incorrect information on your report. If you can remove the negative items, your score will rise. If you need to raise your score make sure you make all payments on time and pay down any outstanding debts. If you are consistent, your score will rise. Ideally, your score should be above 700 to get a good loan with favorable terms.
? How Much Money Should I Save to Buy a House
You need to think ahead and take into consideration how much money you’ll need when you buy a house. You’re going to need cash during the home buying process. If you fail to come up with the cash needed, the process might be delayed, and you may not be able to close on your loan. A couple items that will need to be paid upfront include:
- Closing costs which might include third party fees, origination fees, escrow, title, credit check fees and other costs
- For traditional loans the down payment which can be as little as 3 percent or as much as 20 percent
- VA and USDA programs have 0 percent options for certain qualified people/areas
? Finding a Real Estate Agent to Buy a House
When searching for your dream home, you should be working with a real estate agent. If you need ideas on where to find an agent, consider the following:
- Attend an open house
- Ask friends and family for referrals
- Check for sale signs to obtain agent contact information
- Search online for a reputable agent
You want to choose an agent who has proven their expertise in the real estate industry. If you are thinking about buying a flipped home then you found the right website. We specialize in helping our clients buy flipped or newly renovated homes.
? Why Get Pre-Approved for a Mortgage Loan
The biggest mistake a prospective homeowner can make is to start looking at homes before they even know how much money they can borrow. There would be nothing more disappointing than to find the flipped home of your dreams only to learn you can’t get the loan because it’s out of your price range. The only solution to prevent this from happening is to get pre-approved for a mortgage loan. You’ll know exactly how much money you can borrow, and this will ensure the homes you look at are in your price range.
? How to Make an Offer on a House
When making your offer you don’t want to go too low or too high. You need to be willing to give and take a little. Your real estate agent will help you formulate a reasonable offer. When you work with the renovated home sales team you get a broker that understands the investment side of the business and often times reasonable offers are based on reasonable profits for the investor. Once you and your broker have discussed the details, the broker will then present that offer to the seller. The seller can then either accept the offer or give a counteroffer. Once everyone agrees on the price, you’ll move on to the next step.
? What Happens After an Offer is Accepted on a House
Once the seller accepts your offer, a purchase agreement will be executed by both parties. Your lender will then order an appraisal of the home. If the home appraises, you can proceed to getting the inspection. If the home doesn’t appraise, you’ll need to go back to negotiating or come up with more money for the down payment. Next, you’ll need an inspection. If needed repairs are discovered during the inspection, you can either ask the seller to make the repairs or negotiate the selling price. Once you get through the appraisal and inspection and the parties are all in agreement, then you’ll proceed to the closing.
Buying a home can be frustrating, stressful and tiresome. However, in the end it is a sound investment that you can be proud of. Not only will you own something, but you’ll be able to add your personal touches and make your new home your very own, which is a rewarding experience.
Your real estate agent is the best source of information about the local community, real estate topics and specifically knowledge about buying a flipped home and real estate investments. Give Gabriel Heck a call today at 425-835-3108 to learn more about local areas, discuss selling a house, or tour available homes for sale.