Want a smooth loan application and approval? Read on . . .

Be thorough and up front.  Have all of your financial information, assets and liabilities, documented with account numbers and balances.  Checking account, savings accounts, certificates of deposit amount and maturity dates, IRA/ SEP, 401K, brokerage accounts, etc. will be verified.  Be prepared to explain large deposits within the past few months. Was that money borrowed or a gift? If it was, say so. Are you borrowing from your retirement account?

When it comes to recurring debt, this is where most applicants miss the mark.  You MUST disclose all your debts.  Do you have a second home that you will be renting out? Have you co-signed on a loan of ANY KIND?  Do you have student loan obligations?

You will need to provide a current pay stub, w-2 and tax returns for the past couple of years. If you are self-employed, you will include your Schedule C (P&L).  As an employee, do you have reimbursed expenses?

You will need all of the above – and perhaps more. Keep your documentation on hand because everything will be verified again just before closing.  Lastly, and most importantly, do no incur any new debt.  Wait until title transfer before making any major purchases.

"Sales volume could probably be an additional 10 to 15 percent higher . . ." Jed Smith, NAR

Are low appraisals holding back prices and slowing the recovery? Some people think so --

http://realtormag.realtor.org/daily-news/2012/10/16/appraisals-remain-big-hurdle-agents-say

Is buying a bank owned home difficult?

The process of buying a bank owned (REO, Real Estate Owned) property is pretty straight-forward.  The properties are listed with a brokerage firm and appear in the multiple listing. Your buyer agent can show the property and negotiate the purchase for you as they would in a traditional transaction. You must have a mortgage pre-approval letter or proof of cash.

Caveat emptor (buyer beware) applies to any real estate purchase, especially so with an REO.  Since the property is exempt from OH Property Disclosure documentation, you must be diligent with thorough private inspections.  Some homes have been vacant for a long time and with no heat. You also need to investigate water, sewer and utility payments, any pending special assessments, zoning and use restrictions, point-of-sale inspection repairs, occupancy permits, etc.

The bank wants to remove the home from its inventory, but is not going to give the house away.  They have investors and shareholders they must answer to and are obligated to get the best price possible. Expect to negotiate. You may be in a multiple offer situation, as asset managers often hold out for the best deal.