Rating 4.6

Financing Details for Buying Home in Auction

Foreclosures are a reality in today's real estate market. There's a very high percentage of homes being sold that's attributed to foreclosure homes. That high percentage is bringing in homebuyers as well as investors to real estate auctions. However, a lot of people don't know too much about the auction process, especially when it comes to financing. For example, if you're looking to purchase a house during an auction, you need to make sure you secure the funds before attending the real estate auction. Because more of these auctions have contracts with no financing contingencies in them. This means that if you're thinking of buying, you need to make sure you can because there are almost no refund on bid deposits due to lack of financing.

You also have to pre-approved, not pre-qualified for a loan. A pre-approval required more documentation and background information on the potential buyer of a home. A pre-approval is typically given out by a banking officer but without a thorough financial verification.

If you're seriously thinking about bidding on a home during a foreclosure real estate auction, make sure to ask for the highest amount you're willing to spend on the house when you're applying for financing. It's important to examine the property and think of a realistic value, in other words, what is it worth to you. Consider the other bis you might encounter, additional fees and closing costs. Be aware of the buyer's premium which is disclosed by the auction company. That's usually 5 to 10 percent that's added to the highest bid.

Don't forget that if you bid on a house, you'll have to give 5 to 10 percent deposit in cash, certified check or cashier's check. Usually, credit cards are not accepted at these real estate auctions. Closing is within 30-45 days from the auction. There's usually no hassles with getting the entire transaction done, with no room from error or doubts on your end. It's a fast process which draws a lot of people.

If you've purchased your home through a real estate auction and have to move in pretty quickly, just call the local Maryland movers for professional moving help. All My Sons of Maryland is backed by four generations of movers, with a reputation amongst its repeat customers and the moving industry. The local Maryland moving specialists will quilt pad wrap your furniture, help you disassemble and reassemble household items and help you move your personal belongings safely.