Purchasing a bank-owned property can be a straightforward process, especially when you are well-prepared. Below are the essential steps to consider:
1. Choose Your Location
Determine the location where you are interested in purchasing a home.
2. Monitor New Listings
Keep an eye on new listings in your chosen area. We can notify you instantly when new bank-owned properties hit the market.
3. Make an Offer
Once you’ve located a bank-owned property, making an offer is a simple process. We can prepare the paperwork for you.
We offer electronic digital signatures to expedite the process and do not charge transaction fees.
4. Documentation Requirements
- Cash Buyers: The bank will request proof of funds, such as a bank statement or a letter from the bank verifying funds.
- Mortgage Buyers: The bank will request a pre-qualification letter from your lender. Some banks, like Wells Fargo, may ask you to pre-qualify with them before choosing your primary lender.
- Investors: If purchasing under a corporation, the bank will request the articles of incorporation.
5. Determine Your Offer
First, check if the bank has received any other offers. Evaluate recent sales comparables in the community from the past six months to determine the property’s market value. We can provide you with this information.
Consider the terms of the offer, as cash transactions are more attractive to sellers due to quicker closing times. A higher escrow deposit is also favorable.
6. Offer Accepted
Once your offer is accepted, the seller will select a closing title company to process the transaction. The closing agent will work closely with all parties to ensure a smooth closing. Delays may occur to ensure all issues, such as past HOA dues or outstanding liens, are resolved.
7. Home Inspection
You have the opportunity to inspect the home. We can recommend three licensed home inspectors or you can choose one yourself. The bank typically allows 10 days after offer acceptance for inspections.
8. Shop for Home Insurance
We can recommend local insurance companies or you can choose one yourself. Additionally, you may consider purchasing a home warranty. We often recommend American Home Shield.
9. Finalize Your Mortgage
If using a mortgage, work closely with your loan officer to provide any necessary documents. Your lender will coordinate with the title company closing agent. Once your loan is fully approved and you have the clear to close, the closing agent will prepare the necessary documents.
On closing day, bring two forms of valid ID and a cashier’s check. For cash investors, the closing agent will email the necessary documents and wiring instructions for the funds.
10. Congratulations!
You are now a new homeowner in Central Florida.
Let us know your search criteria, and we will find a bank-owned property that matches your needs.