Prepare Yourself when Buying a Bank Owned Home

If you are in the market to purchase a new home and it happens to be a Bank Owned Property/Real Estate Owned, here are a few tips to help you with your purchase.

1)  Be prepared to be pre-approved by the bank‘s own representative.  The bank wants to make sure that they feel you can qualify for the loan as well as your own lender.  You are not obligated to use the bank’s lender, they just want to be assured that there won’t be any approval issues down the road.  The market is moving quick lately, so this is not something you should put off.  Be proactive and ask your Realtor who you need to get pre-approval from.  Usually there is only one lender and they usually do the approvals in the order they were requested. 

2)  Make sure to get a whole house inspection by a licensed home inspector.  If any issues show up in the HVAC, make sure to contact a reputable heating and air conditioning company to inspect.

3)  For added reassurance pay for a pest inspection to make sure you can live with any necessary repairs in the future.

4)   Your Realtor can order a roof  inspection (usually free of charge) from a reputable Roofer so that you have a report on the overall condition of the roof.

5)  Ask for a Home Warranty from the Bank when writing your offer.   Even if the Bank will not pay, I would recommend purchasing it for at least a year since no one knows the history of the home.

There are many unknowns when purchasing a bank owned property so make sure to do any and all inspections necessary to help make you aware of the overall condition of the home.  

Banks do not know the history of the home; therefore, it is up to you to investigate the home before purchasing.

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