Why would anyone consider buying a home in the middle of a housing crisis? There is an old saying, the way to make money in real estate is to sell when the masses are buying and buy when the masses are selling.
This may be the best time in an entire generation to purchase a home.
There are some incredible deals to be had, interest rates are at an all time low and government stimulus packages promise to sweeten the deal.
But how can you exactly buy a house during these times? Here are some tips: 1.
Improve your credit score.
One of the most important things that you need to look after is your credit report.
Make sure that it is squeaky clean, which means that are no reports of delinquencies.
You should also not have filed for bankruptcy at least for the last 5 to 7 years.
Now days a score of 600 will get you an FHA loan with their best interest rate, however if you seek a conventional loan with its typically lower overall costs, a score of 740 or better will get you the best possible interest rate.
When you have an excellent credit report, you can get better loan terms.
This is because mortgage companies will be more confident of your ability to pay and promptly at that.
Interest rates are often very small too, so you can save a lot of dollars out of your amortization expense.
2.
Go for foreclosed homes.
There are thousands of families these days who are aiming for foreclosure of their property before they suffer from too much debt.
But someone else's loss can be your gain.
The good thing about buying a foreclosed property is that there is a huge chance that you can get it at 50 to even 80 percent of its original price.
By then, you only have to assume a very small part of the mortgage.
Since foreclosures are complicated than you think, you may want to work with a mortgage broker or company.
Expect some costs to be paid, so make sure that everything is clear to you before you sign on a deal.
3.
Ask friends and family.
We usually find ourselves looking at property listings, hoping to find properties that suit our budget and needs.
What we fail to see are the homes of friends and family members.
Before you check on a listing or hire a real estate agent, see if there is someone you know who is thinking of moving out and selling their home.
One of the greatest advantages of purchasing a property from them is that the price can be much lower, and you will have better terms than those offered by mortgage lenders.
For example, your mom or dad may bequest the property to you as an heirloom.
4.
Choose homes that have been in the listing for a long time.
Owners and real estate brokers of these houses would love to lower down their price just to have their property sold.
You may want to take a look at the property.
Perhaps you will discover a lot of things that other home buyers are missing.