Four Things to Consider Before Buying a Foreclosed Home

Four Things to Consider Before Buying a Foreclosed Home

Buying a foreclosed property can be a great way to get a good price on a home. But is it the best way for you to buy a home?

Purchasing a foreclosure is a great way to get a good bargain on a home these days. Many people are getting huge homes at small home prices. Unfortunately, many home buyers do not know what is involved with buying a foreclosure and they end up with a bad experience. Here are four questions you should ask yourself before you purchase a foreclosed property.

1. Is a foreclosure right for me?

If you have never purchased a foreclosure or a home for that matter, you should seriously consider the work that often goes into buying a foreclosure. Many foreclosed homes need repairs in order to be brought up to code and it will be up to you to make those repairs. Home buying experts suggest that if you are a first time homebuyer, a foreclosure may not be ideal for you. But if you are willing to roll up your sleeves and do some work on the house and put some money into it, a foreclosure can be a great bargain.

2. Do I have the financing to make it happen?

Buying a foreclosure is much like buying a regular home. You should have your financing prepared to go so when you see a foreclosed property that you want, you can jump on it right away. You should know how much of a monthly payment you can afford and it helps to be prequalified for a mortgage before you begin your house search so you can put together an offer when you see the home you want to buy.

3. Does my real estate agent specialize in foreclosed homes?

Buying a foreclosed home is similar to buying a regular home, but there are a few differences. It’s important to have a real estate agent that knows the ins and outs of buying a foreclosed property. A real estate agent can point you to the best title companies and a knowledgeable team of closing professionals and make the process much more smoothly. The paperwork for buying a foreclosed home is also slightly different and it is important that it is filled out right when you make your offer for the best possible results.

4. Can I get a traditional real estate property for the same price?

The prices of homes in most of the country these days are much lower than they were a couple years ago. As a result, there are many homes on the market that you can purchase at a great bargain. Do you want to go through the hassle of buying a foreclosed property if you can get a non-foreclosed property for about the same price?

Buying a foreclosed home can have many advantages. If you educate yourself on the process and the possible work involved after you move in, you can get a great deal and save thousands of dollars on your purchase. Just be sure that you know what you are getting into before you make your final purchase offer.

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  • VA Loans

    July 15, 2011

    I just read that it is almost impossible to get a VA loan with foreclosed homes. That's because the VA wants the home to be in good shape, no work required. So if you plan on using a VA loan to purchase a foreclosed home, be prepared for a tough process.

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