Hello all,
I recently ran across a 3 family for sale by the owner. I looked at the house and everything seems fine, minus a few repairs. 1 of the apartments is occupied. The owner is not interested in holding any notes, so I have to finance the home conventionally, which is not a problem. What do I need to take to the loan officer in order to get started on a loan. Also should I make an initial contract to have the seller sign or just sign a purchase agreement and would that be enough to begin processing my loan. Does the loan officer usually needs something to work off of. If I can write the contract should I be worried about negotiable items at this time or let the lawyers include then in the adendum. Thank You, youngone
You could ask the loan officer. If you were buying your own home you could get approved for a specific loan amount by filling out a 1003. From that they can run credit report and verify information. Eventually you will need the contract with the purchase price etc. Then the appraisal, inspections, surveys.
Please do you due diligence such as inspection by a qualified person of all mechanicals, roof, termites, appliances(get a bill of sale). Get a copy of any lease and have the tenant verify with an affidavit. Rents should be prorated to date of closing(best 1st week of month). You should be credited with deposits. Put all that in your purchase contract.
I also hope you are not paying retail. You buy at a discount or if everything is in good shape you buy at a cap rate. While that may be 10% you want to buy at a better rate so when you sell there is a profit.
Thank You, I am not buying retail. The house appraissed for 179,000 and I am buying it for 145,000 with a 5% sellers concession to help with closing and only puting down 3%. The house needs some minor repairs, but nothing I cant do myself and the person selling had to move because her job moved her. I will put those things in the contract that you suggested and see how this works out. I am very confident however that I will get this deal. Thank You, Youngone