Guide to first time foreclosure home buying in Texas

March 8th, 2010 |

Buying a home itself is a long and complicated process and even more if you are buying a foreclosure home as the foreclosure process can be very complex. Many think that buying a home through foreclosure is almost finished once your submitted offer is accepted. But before submitting the purchase offer and after it there are many other steps that any prospective home buyer must take action to successfully complete the process. If you are one who is looking to purchase home then you are at the right place as this article will guide you through a series of steps to be followed in Texas during purchase of home.

Before submitting a purchase offer, you must find out different offers at place you are looking to invest and find a right one for you. Once submitted, after several counter offers your purchase offer may be accepted. Accepting offer is not the final step in your buying a home but thereafter, post buying actions should be taken care off in order to smooth the home buying process.

First step after your purchase offer at foreclosure is accepted is getting appraisal done. This is most important because in most cases, the lender will only loan you 80 to 90 percent of the home value where the remaining 10 percent must be arranged by the buyer itself which is called as down payment.

To perform this action, one must approach a licensed real estate appraiser but in most cases, the lender wish to use his own real estate appraiser in such case you will not have any option to choose the real estate appraiser. In the process of appraisal, the appraiser will assess the property with help of different set of criteria to arrive at value of the property. In fact the figure at which the appraiser arrived at is the opinion of the appraiser. In simple words it is the value of the property according to him but it is mostly considerable when dealing with lender for home loan.

In case the appraised value of the property is less than your purchase offer, then it is up to you to make use of the Texas home loan lender or move to other home loan issuer. If you decided to go with loan issuer, bank will still loan you, but only a percentage of the appraised amount, where the remaining amount has to be arranged by the buyer itself.

If you are unable to meet the remaining balance amount then you can decide to lapse the purchase agreement with the foreclosure seller. In case the purchase agreement is lapsed only because of the apprised value does not meet the purchase price then the buyer money will be returned back. Then you can start looking for the new offer that suits your need.

Hence, one must remember to include the appraisal condition in the purchase agreement as in such conditions mentioned above will you can make or break the deal depending on the appraised conditions.

Articles on this site have been acquired from a variety of sources. No content on this site should be considered financial or legal advice.

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