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Profile picture for JudyHouseHunterID

a home i want is going up for auction. how do i bid? do i need a pre-approval for a home loan?

  • July 27 2009 - Macon
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Answers (3)

Best Answer

Profile picture for benmartin101
Hey, of course it depends on the type of auction you're talking about.  If it's a forclosure at the courthouse steps you'll need the money right then.  But if it's something like the REDC or other auction houses you'll need to find out how much you'll have to put down that day.  The REDC auction works with loan providers so you could get approved by them.  But if you wait till the day of the sale you wouldn't know how much you could afford ahead of time, and you won't have as much opportunity to shop around for the best rate.  If it's a forclosure auction you'll have no way to inspect it like the first poster says, but if it's through an auction house they should have an open house set up.  I'd suggest reading everything you can that the auctioneer has, and ask them any questions that you come up with. 
  • July 28 2009
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Ben,

Even if it is through an Auction house and they have an open house are you going to apply for the mortgage prior to the auction and the open house so the bank can order the appraisal and have the appraiser attend the open house to complete the appraisal.

Buying a home at Auction sounds like a great way to get a deal...it is also a very easy way to get yourself into trouble you can't get out of.  I would advise against it unless you can buy the property for cash...way too much can go wrong with financing these days.
  • July 28 2009
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Unless you have cash...I would advise against putting a bid on a property at auction.  It may be different in GA but in MA you can win a property at auction and not be able to access the property for an appraisal.  I know of no loan that you could get without an appraisal.
  • July 27 2009
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