When it comes to buying your first home, you may be realizing that there are a lot of hurdles. One of the biggest hurdles is the cost of ownership. This is exactly why you may want to explore the option of purchasing a foreclosed home. After the last economic crash, there are countless homes on the market that have been foreclosed. These homes are going for a fraction of the cost of other homes. In some cases, you may be able to score a beautiful home in a great neighborhood by going this route. Before you purchase a foreclosed home, though, you want to know what you should and shouldn’t do. Here are some dos and don’ts of buying foreclosure homes.
Don’t go for a lender that is not familiar with the market of foreclosed homes. Ideally, you want to get a loan for your foreclosed home. However, you don’t want to go with a lender that is not familiar with the market of foreclosed homes. Not only will going with an educated lender offer the best interest rates, but your likelihood of being approved will be much higher.
Do purchase a home with a real estate agent that is familiar with foreclosed homes. Not only do you want to find a lender that is familiar with foreclosed homes, you also want to find a real estate agent that is experienced with foreclosed homes. For instance, you may not want to go with an agency like the Roche Realty Group, because they are more experienced with non-foreclosed homes. When it comes down to it, your real estate agent will be a close ally in your home search, so you want to find the right agency.
Don’t disregard the advice of a real estate attorney – you want to know the legality behind purchasing a foreclosed home. When it comes down to it, each state will have its own laws regarding foreclosed homes. If you don’t follow the advice of a real estate attorney, you could wind up getting in trouble or not taking the right steps to purchase your home. The truth is that foreclosed homes are usually owned by a bank, so you have to jump through a number of legal loopholes before you get the keys to your new home. The last thing you want is to put more hurdles in the way of your homeownership goals.
Do get prepared for remodeling costs. On top of everything, you also want to get prepared for remodeling costs. Most foreclosed homes have been on the market for a long time and they have not been touched up. Many of these homes have significant damage and will need to be repaired. For instance, the foundation may be sagging or the roof may need to be replaced. Sure, the cost of the home may be significantly lower, but there may be high remodeling costs. In the end, you want to be fully prepared for these costs before you put in an offer for the home.