Good Neighbor Next Door Process
GNND Buying Process
Good Neighbor Next Door home buying process.
Here you will find 6 easy steps to help you through the process of buying a home through the HUD good neighbor next door program.
1.) Check Your Eligibilty to Participate
Any full time teacher, police officer, firefighter, or emergency medical technician is an eligible participant in the gnnd program. You do not necessarily have to verify your eligibility anywhere, you simply just need to be employed full-time in any of these professions.
2.) Get Prequalified for a Mortgage
The very first step after personally ascertaining your eligibility is to prequalify for a good neighbor next door home loan. We can easily assist you through this process is less than 15 minutes. In fact, to prequalify you do not even have to provide a full application, but just briefly provide us with general details regarding your finances, credit, and work history. If you wish to get preapproved, which is providing a full mortgage application, we can help with this too, but it is not a requirement. However, in order to bid on a property through HUD you must provide a prequalification letter.
3.) Contact a Good Neighbor Next Door Realtor
After getting prequalified or preapproved for a gnnd mortgage the next step is to contact a Realtor in your area who is experienced with the program. We can help recommend a Realtor in your area since we work closely with a lot of Realtors. If you wish to find one on your own you can search a database of licensed agents on Realtor.com.
4.) Search GNND Listings and Place a Bid
You can search eligible properties on the HUD home listings website for GNND . Once you find a property that you want you will want to place a bid, which you will then be put into the lottery for the property. How the lottery works is anyone who submits a bid on a particular property will have an equal chance of winning. Therefore, if you and 3 other participants place a bid every0ne will be placed in the lottery with a 1 in 4 change of winning. If you are the only applicant than you will have a 100% chance of winning.
5.) Submit Contractor and Earnest Money.
If you are fortunate to win the property you will need to submit a contract with the assistance of your real estate agent. To place a contract on any HUD home you are required to deposit earnest money in the amount of 1% of the listed price with a limit of $2,000. So if you want to buy a $150,000 home the earnest money would be $1,500.
There is a minimum earnest money requirement of $500 so even if the house were listed for $30,000 you would need to pay $500.
6.) Proceed with Home Loan Process
Once your contract is successfully submitted and deposit money is acknowledged by HUD you will want to proceed with the home loan that you were prequalifed for. We pride ourselves on our efficiency and the simplicity of our home loan process. We aim to close all loans in 3 weeks or less. However, during steps 1-5 we can prepare your mortgage for a quick close. To learn more about the good neighbor next door program, as well as financing options, give us a call today.