What you need to know about buying refinanced homes

When purchasing a house, choosing a refinanced home is one way to save money. A refinanced home is likely to be cheaper than other homes on the market so you’re sure to get a good deal.

Although there are a few things unique to purchasing a refinanced home, for the most part, it’s the same as buying a new home.

How to buy a refinanced home

Before buying a refinanced home, here are a few things you should note:

• Refinanced homes are sold as-is: you can’t ask the landlord or the homeowner to fix something, like a leaking roof, prior to the sale.

• Buying a refinanced home takes a bit more paperwork than a traditional sale, so it may take a little longer to process.

• The state of the homes available vary greatly, so check out each home thoroughly before making your decision.

• Properties that have been refinanced for a long time may have underlying issues due to long-term neglect, so watch out for these.

Check your options

Once you’ve decided you want to buy a refinanced home, check out the available homes listed by different institutions like banks, Pag-IBIG Fund, or real estate agents. There are also refinanced home auctions which allow you to gain first access to a refinanced home before it is listed on any site.

Inspect the property

Refinanced homes are sold as-is-where-is, so expect to do repairs both inside and outside the home.

Be diligent about your inspection and make sure you go over every nook and cranny so you get a better idea of how much your repairs will cost and if it’s worth it.

Go through the documents

Carefully read the documents to make sure nothing is amiss and the titles are ready to be transferred to you.

If you are purchasing a refinanced home through a bank, you don’t need to worry about this as much since they often take care of this for you.

Submit your bid

Fill out and submit the Offer to Buy Form and Buyer’s Information Sheet along with the required documents to your real estate broker.

Because a lot of refinanced homes are in some form of neglect, expect the good ones to go through a bidding war. Be prepared to pay more than the asking price if this is the case.

Pay

Settle the down payment, which is often 20% of the property value if you’ve opted for bank financing. You may also pay for the house in cash.

Transfer of title

Upon full payment of the property, you can ask your real estate broker to begin processing the transfer of title to your name.

Turnover

Once the house is in your name, you can then begin renovating your property as you see fit. Make sure you obtain the necessary permits from your barangay and city or municipality before doing so to avoid paying for any fines or penalties.

Just like purchasing any other home, you need research and practice due diligence before finalizing the sale on a refinanced home. Although it’s priced significantly less than a brand new home, a refinanced home still costs quite a bit of money, so you need to be as informed as possible before making your decision.

Metrobank can assist you in securing the home of your dreams sooner. Learn more about our Metrobank Home Loan options today.

https://www.metrobank.com.ph/articles/learn/steps-to-buying-refinanced-homes