As a 1st time home buyer, should I purchase a foreclosure home?
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Use a good, experienced realtor & look at both. Remember you can qualify for a lot more than yopu can really afford. Don't become house-poor by buying too expensive of a house. Also, make sure you know all the details of your loan.
forclosure homes are great. The agents and banks want to get rid of them so they mark down the asking price by ALOT you get a steal, often there is nothing wrong with the house just the prior owners hit a rut and couldnt pay for it.
You can go to the HUD website and find govt. back homes that have gone to foreclosure, and now HUD owns them.However, there are requirements you must meet before you can actually submit a bid.Check with your agent to see what those requirements are.
Yes. But I would wait. There are going to be a TON of foreclosure homes on the market in the next six months to a year. When banks have a lot of FC inventory, they are more willing to make better deals. You will find a home that meets your needs for less money if you diligently pursue this avenue. Yes, it's sad that someone lost their home. But one man gathers what another man spills.
I'd recommend against it. Sure, you can find some great deals on foreclosures out there, but they are usually snatched up by investors with cash. Most foreclosures (not all, but most) require substantial repairs that would overwhelm most first time home buyers. The other problem is getting the loan; many foreclosures have needed repairs that will be reflected on the appraisal. The lender will require the repairs are completed before closing, and banks do not negotiate on repairs.
Bottom line, find a good home that you can afford without all the hassles of a typical foreclosure. Also be sure to get pre-qualified with a mortgage banker, not a broker. My favorite is Julie at http://primelendingonline.com
Good luck!
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