Sunday, November 25, 2007

Orange County Real Estate - The Truth About Pre-Foreclosure Short Sales (Part VI)

Rule #6 - Prime Your Pump

Link back to Part V

Nothing is more frustrating to potential distressed property buyers then to find the absolute perfect deal and not be able to move quickly enough to purchase it. Because of this, prospective investors need to prepare now for the property they will find tomorrow.

Loan Pre-Qualification - Getting ready means many things, the first of which is to figure out finances. Short sale buyers who do not have enough cash to purchase the entire property need to talk with a reputable real estate lender to not only find out how much they are able to borrow, but also what kind of loan product they would like. There are a variety of products available and going into the details is beyond the scope of this article, but it is important to become familiar with the options before finding that deal of a lifetime.

FICO Scores - FICO Scores are a huge determining factor in whether a buyer will be able to obtain a loan. Read this quick article on
FICO scores to learn more about this relatively mysterious topic that will be key in helping buyers obtain short sale property.

Down Payment & Closing Cost Money - Home buyers will need to figure out if they will be making a down payment to purchase the property. In addition to a down payment, they will also usually need money for closing costs. Real estate transactions take a lot of work from numerous people in order to consummate legally and safely. Each of these people will need to be paid at the close of escrow by the buyer and sellers of the property.

Some examples of parties who may be receiving closing cost money will be the escrow company, mortgage company, tax collector, county recorder, and title insurance companies. Please note that real estate agents are not paid by closing costs and are usually not paid by the buyers of the real estate. The seller (or the bank for short sales) will be the one paying the Realtors.

Also note that in some cases it may be possible for the seller to pay all or some of the closing costs. Regardless of whether they actually end up using it, prospective foreclosure buyers need to communicate with their agent and loan officer the amount of money they have available for down payment and closing costs. The only way to communicate it effectively is to provide bank statements or some other proof of funds for the money they intend on using for purchase. Lenders are not asking to pry into a buyers entire net worth, just for proof of these real estate related funds.

Choice of Lender - There truly are so many choices with regards to mortgage companies that the decision is often overwhelming. Experience has shown that almost everybody promises the world, but few ever deliver. In an effort to save some people future headaches, we've put together a list of preferred vendors for
orange county home loans. We strongly urge consumers to use these vendors as they have saved many loans for our clients who had originally elected to get a loan elsewhere only to have the companies claims prove to be empty promises.

With a little legwork up front, short sale home buyers will go a long way in making sure that they don't miss a rare opportunity. Once they are ready to pounce, they will find our premium
Orange County real estate finder to be priceless in finding that perfect property. Proactive consumers will also find that our interactive Orange County homes for sale map is as helpful as it is exciting. Those who wish to learn more about the area, should see our Orange County real estate guide for insider information and local neighborhood reviews. Happy Hunting!