The first step is to get pre-qualified with a mortgage broker, bank or credit union. Mortgage brokers work with a variety of investors and obtain wholesale rates. Mortgage brokers can do deals banks can't do and also can price below a bank in many cases.
Before submitting a written offer it is important to know how long the property has been on the market. Shorter is better. If it's been on the market a long time the price is too high or the property needs work. Find out how long the previous owners have owned the property and what they paid. If they bought the property recently and the sales price is much higher than the price they paid, you would want to know what improvements were made. The city assessor or treasurer's office can give you information on the phone or their web site. Knowing the assessed vale, fair market value, square footage, number of rooms, last sale date and price are important.
If you are serious about the property you can put down earnest money (usually within 3 days of writing the offer) that can be as little as $500. The more you put down the stronger your offer looks. Working with a mortgage broker and a realtor are very important. Having a pre-approval letter from a lender is vital. Its lets the agent on the selling side know that you have financing and that knowledge leads to a stronger offer. Keep in mind you can have a real estate agent represent you. Also, remember the listing agent does not usually represent you. In most cases their job is to the get the best offer for the seller.
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