| 1. Hire the Right HUD Expert - Many realtors and | | | | can cause devastating results. |
| lenders and not familiar with the HUD guidelines and | | | | 6. Be Informed- First Time Home Buyers should have |
| the HUD bidding process. Many buyers are often | | | | an idea of: utilities cost, taxes, insurance, maintenance, |
| discouraged by inexperienced realtors and lenders | | | | homeowner dues, interest rate, monthly payment, etc. |
| from buying a HUD homes, this is simply because the | | | | prior to closing on their home. Often times buyers do |
| realtor has no knowledge of the HUD process and | | | | not know which questions to ask, allow your realtor to |
| would prefer if you choose another home. | | | | assist in getting these questions answered for you. |
| 2. HUD Home Selections - In this economy, HUD has | | | | 7. Do a Final Walk-Through- This is more important |
| made it very appealing for prospective home buyers. | | | | than ever. I recommend doing a walk thru at least 1-2 |
| When choosing a HUD home make sure your realtor | | | | hours prior to your closing. There have been many |
| has provided a list of sold comps in the area of choice | | | | occasions where homes are vandalized and it's |
| for the last 60-120 days, by doing this, you will be in a | | | | important to make sure the home that you are buying |
| better position to know exactly what amount you | | | | is in the condition in which you first saw it. |
| should offer HUD for the property. Keep in mind, | | | | 8. Schedule a Home Inspection- When buying a HUD |
| because there are so many HUD foreclosures, HUD in | | | | home, Make sure all utilities are on (gas, electricity, and |
| many cases have been forced to reduce the listing | | | | water), so you can inspect everything in working order. |
| price of some properties below $20,000. The comps | | | | HUD listings are SOLD AS-IS. Buying a HUD listing is |
| provided by your realtor will also let you know when | | | | not a bad thing. The advantage of buying a HUD listing |
| you are getting a bargain. | | | | is numerous. If the home is in need of repair, HUD |
| 3. Get Loan Approval First- HUD requires that the | | | | offers a repair allowance for their insured properties |
| borrower has already met with their lender before a | | | | and HUD also allows a buyer to get 203K financing |
| bid is placed on their properties. At the time of bid | | | | (home repair loan) if the repairs needed exceed |
| submission, a pre-approval letter from the lender is | | | | $5,000. In many cases some HUD homes are in |
| required. A professional realtor will never allow a | | | | excellent condition and require no repair at all. |
| borrower to place a bid on a HUD property without an | | | | 9. Why Consider HUD Foreclosures - When comparing |
| approval letter or commitment from the lender. By | | | | the process of Short Sales, Bank Owned |
| placing a bid without a lenders' approval letter, the | | | | Foreclosures and HUD Homes. HUD has the most |
| buyers creates an opportunity to lose their earnest | | | | streamlined process when it comes to notifying the |
| money. | | | | winning bidder. Unlike the other processes, short sales |
| 4. Avoid Submitting a Low bid- As stated previously, | | | | and bank owned homes can take weeks, if not |
| the comps provided by your realtor will let you know if | | | | months to let a buyer know if they are the winning |
| a property is priced just right or if it's priced too high. If | | | | bidder. In addition to HUD's quick notification (usually |
| HUD has reduced a property on one or two | | | | within 24 hours), HUD will in some cases provide great |
| occasions, avoid submitting a bid that's even lower, this | | | | buyers incentives and bonuses, such as HUD $100 |
| will save a lot of wasted time for all parties involved. | | | | Down Program. HUD will also pay 3% toward buyers |
| 5. Utilize Your Team- Allow Your Realtor to Facilitate | | | | closing cost and offer some great homes at very |
| the Home Buying Process -By aligning yourself with | | | | affordable prices. |
| the right real estate professional, you'll have an entire | | | | 10. Loyalty Breeds Loyalty- Be open, honest and |
| team working for you. Top real estate professionals | | | | up-front with your team. Never disclose misleading or |
| have lenders, title reps, inspection teams - an entire | | | | untrue information about your financial or job situation. |
| group of trained professionals to make the whole | | | | During your realtor consult, make sure all of your |
| buying experience simple and easy for you. Often | | | | expectations as a potential home owner are |
| times, buyers will pretend they understand the home | | | | discussed up front. The home buying process can be |
| buying process better than trained and educated | | | | very stressful, but with the right team on your side, you |
| professionals, allow the realtor to lead the process, | | | | can expect a successful outcome. |
| there are many pitfalls buyers are unaware of that | | | | |