How To - On Mortgage Credit Today

Don't go about this with no Credit at all -

If you don't have a job and your credit score is below 650 don't bother - try a hard money loan instead - that being said .....

While Banks are hesitant to loan any amount of money in todays economy, on the other hand, they are also stuck with all of those foreclosed properties so it puts them in somewhat of a hard spot.

Foreclosed on properties are a liability for the banks.

Understand their weakness and capitalize on it for yourself!

Banks are not in the Real Estate Business, but rather the money business.

If you understand their dilemma your more apt to obtain that mortgage - and more importantly at a decent rate of interest.

Banks are more willing to negotiate Real Estate now, more than ever before ...

Sure they like to play the tough guy - but only because their job is to get all the money out of you that they possibly can while dumping the property at the same time.

To obtain mortgage credit from a bank these days you need to remember that you are on top, not the bank.

You have something they need - the desire to take a liability off of their hands - Properly utilizing this attitude will net you a great deal on a property.

Arm Yourself with knowledge

Once you find yourself a property or two that your interested in - do your research

Find out how long the property has been foreclosed on.

The longer the better - because the longer that property sits - or has sat - the longer that bank has been losing.

Find out how much is owed on the property.

Find out what the property originally sold for and if that price was inflated at the time.

The banks will try to get out of you, the extra mortgages on the property that they had given to the previous owner above and beyond what the property was actually worth (which is what started this entire foreclosure thing anyway)

Do an inspection of the property.

Check the electrical, plumbing, siding, foundation, roof, check for dry rot, and also your normal wear and tear stuff - paint, yard, flooring, carpeting etc....

How much will these repairs cost?

Look at the market in the area - what other properties are going for - and have sold for recently.

Write all of this down as you go through each step.

Take all this knowledge you have obtained and use it to your advantage in deciding what you are willing to pay for the property.

Come to a firm price your willing to pay for the property - remember you want to pay as little as possible - but within reason.

Go talk to the banker - give him/her your offer and be prepared for a big fat No Way from them.

This is their way of initating the negotiation process - let them do it.

Now, its' time to understand what I said at first - don't crawl into a mole hole and get all sad.

Remember - your on top - the banker is just pretending he/she is.

Now is the time to calmly and professionally call his bluff.

Pull out your notes - and go over everything you have learned about the property - price- condition - cost of repairs - market in the immediate area - if done properly - with confidence, enthusiasm , and a slight bit of attitude that you could care less if you buy the property or not, you will land the deal!

It could take a day or two for the banker to call you back - you may have to walk out without a solid deal made yet - but, if you did all your homework right, he will call - and you will land a great mortgage at a great interest rate !