How to Buy Your Dream Home and Save MoneyNov 21 2012
When choosing a home to purchase, you have three options: a regular sale, short sale and foreclosure. Due to the economic market, there are many foreclosures on the market that will offer you a cheap housing option with possibly less work than you might expect.
Find a home and do an inspection: As with any house, you have to decide on location, size, type, etc. When deciding what neighborhood to live in, factor in your lifestyle, the schools in the neighborhood and the overall safety. Keep in mind when looking at foreclosed homes that they come as-is, so make sure you inspect thoroughly so you know what you’ll be in store for!
Get Pre-Approved: Pre-approval will give you an idea of how much house you can afford while simultaneously letting sellers know you’re serious about purchasing their home. Check out our mortgage calculator to give you an idea.
Find an experienced Agent: Even though foreclosures are very common lately, you still need to find an agent that is familiar with the process. If the agent is familiar with the bank that owns the foreclosed home, even better! Every bank has a different process in how they handle and sell foreclosures, so an agent who is experienced with the bank will make your process go smoothly.
Find out who owns the home and make an offer: If the home is about to be auctioned, you should contact the trustee or attorney, to ask questions and find additional information about the property. If the house is bank owned, your agent will present your offer directly to them.
After you make an offer, it may take some time to get a response as foreclosures are a bit tricky; however banks are becoming more efficient in handling them. Overall, buying a foreclosure can be a great investment if you’re willing to put in a little “elbow grease”.