Benefits of Looking at Foreclosed Homes For Your First Purchase
When you're thinking about buying a new house, one of the things that you should think about is the advantages of shopping the available foreclosures. After all, there are many great benefits to buying a home that's in foreclosure. Before you buy a home that costs you more unnecessarily, here are a few of the many reasons why a foreclosure is often a great investment.
You're Not Limited On Your Financing Options
Unlike traditional home sales, the seller in a foreclosure is the bank that has taken ownership of the house. That means that you can finance your home purchase any way that works for you. Banks are usually willing to accept any kind of financing, including VA or FHA loans.
The only time this may not be true is if you buy a home that's in pre-foreclosure. If the bank hasn't actually foreclosed, the owner is selling it in what's known as a short sale. Since the homeowner is selling, they have the option to require that any buyer produce cash or to refuse any type of financing.
The Bank Will Be More Willing to Sell If You Can Pay In Full
If you have the funds, either in cash or already accessible through a lender, to pay the full balance of the foreclosed mortgage, you'll have a much better chance of being the one that the bank sells to. The bank wants to make as much of their money back as possible, so being able to pay the full balance makes you a more viable candidate than others.who may be only offering a percentage of the balance.
You Don't HAVE To Pay In Full
One of the things about foreclosure is that the bank, while they want to make as much of the balance as possible, would rather get some of the balance than none of it. That means that they may be willing to negotiate the sale price. They will be motivated to sell, so you may be able to use that to your advantage to get a great deal on the property.
With benefits like these, you can see why buying a home that's in foreclosure (or approaching it) may be a great way to go for your first property investment. Talk with a real estate service agent near you to find out more information about your options and to find the right home for your needs.