A growing number of Americans are choosing to purchase foreclosed homes because of the massive savings that tend to come along with the transaction. However, before you start qualifying for a mortgage to buy one of these distressed properties there are a few aspects of the process you should be aware of, says Fox Business.
Prior to buying a foreclosure, Fox Business recommends doing some research about the area the property is in. This means doing homework on recent home sales prices in the area, foreclosure rates, school districts and other aspects that could have an overall effect on the property’s value.
Some areas have more foreclosures on the market than others, so it’s important to find similar properties in the area. If there are very few to be found, you have a better chance of getting a deal on the sale price, says the source.
Additionally, try to get a feel for what kind of shape the house is in, advises Fox Business. Even if you consider the sales price a steal, the cost to repair the home could end up canceling out the savings.
When making a mortgage rate comparison, it’s important to have the latest information. Freedom Mortgage updates its mortgage loan rates daily to make sure you find the best mortgage, whether you’re looking to buy a home or just refinance an existing loan.
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