First Loan + Other Questions!

2 Replies

Hi there!  I have a few questions.

I've found a few cheap properties that I would have seriously considered flipping had I been ready. I kinda like to practice before the time comes to actually buy. As evidence of my rookieness - how does the buying process work exactly? Can I have a loan ready to go and then go look for houses so I can present an offer quickly? Would this be pre-qualifying? Or do I find a house then go get apply for the loan?  I'm pretty sure I know the answer but wanted to see what the community says.

Further, if the home is 70k and needs about 30k in repairs - do I get a loan for 100k or do the repairs have to come out of pocket? Would a bank approve a loan above the purchase price?

Finally, would I benefit from using a realtor that specializes in investment properties or will I be okay using analysis based off advice on here + various books to determine whether to flip (or buy + hold) a home.  

Thank's everyone in advance.

1.  You DO want to get pre approved first so you can make a strong fast offer if needed.

2.  No bank will make you a loan on a home needing and renovations, especially $30k.  You need to buy a home with no or hardly any noticeable repairs as the appraiser will find problems and the loan will stop unless repairs are corrected.

3. You should take advantage of an experienced Realtor, your not paying them, the seller is. 

Good luck.

Curt, thanks for your post.  As a beginner, there are lots of things that can be unknown.  Sometimes simple answers are not common knowledge and I appreciate you taking the time to answer the questions above.

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