Below market homes are running the gamut these days, and that includes foreclosures. But how do you buy them? What specific considerations should you be concerned about, and when is a seemingly good deal, not such a good deal?
This list should help:
- Get preapproved by a lender.
- Consider a real estate agent or attorney to help you through the process. Get help from someone who knows and understands foreclosures.
- Look for foreclosed homes online by placing “foreclosed homes” in the search bar, but be careful. Scams are out there! One reliable source is HUD.gov.
- See if the lender is willing to lower any costs because of the default of the previous owner. These costs might include a lower interest rate or down payment; even closing costs.
- Stay within your budget. Manage your money. Remember that repairs will and do add up; consider all your expenses when purchasing your foreclosure home.
- Make sure the repairs to the home are cosmetic in nature; painting, new carpet, etc. You may not want to invest in a home with a sinking foundation, for example.
- Buying a foreclosure isn’t the piece of cake it used to be. More and more folks are attending auctions, driving the prices of foreclosures up, so keep this in mind if you attend one.
- Get a home inspection. Make sure that the deal you are getting is really a deal.
Searching for your dream home can be a dream; make sure you do it with fewer headaches by following the above helps.