The Homebuyer’s Guide in Purchasing a Foreclosed Property

By: Joseph Smith


Though foreclosure drove home prices down, able buyers who have been eyeing homes for a long time has found the perfect time to get a loan and purchase. But lenders are now tougher to their borrowers so preparation is the key.

Edward Mermelsteinm, an expert on client connection to the international real estate market, has some guides on how to qualify for a mortgage and how to ensure prevention of foreclosure.

1. Appraisal.
Appraisal assesses the real market value of the home. It corrects discrepancies that may affect the marketability of a home. Banks hope for appraisals higher than the requested loan to prevent delinquencies and even foreclosure.

2. Enough fund for the down payment.
It is evident that lenders are now stricter, so understanding their requirements will be helpful. But there must always be that reality check. A good home choice must be financially manageable. It is unwise to buy something that will force a homebuyer beyond his means. This choice usually ends up in foreclosure.

3. Good credit score.
A bad credit score means difficulty in borrowing.

4. Contingencies.
Two critical factors considered in home purchasing are right appraisal and availability of funds. But having these is not enough. Real estate agents must assure their clients of their contingencies that prevent unrealistic contracts.

5. Be prepared for anything.
Some chose mortgage brokers, some banks. But it is smarter to choose established banks that are easier to negotiate with since they own the loan. While in unpredictable lending agencies where loans sometimes go into a pool of loans, it can be difficult to re-arrange terms in case the trouble of repossession comes.

Homebuyers must have a well prepared plan before they actually purchase a repossessed home. Risks are involved, but knowledge of the process and smart decisions will help in having a dream house safe from foreclosure.

Article Directory: http://www.articletrunk.com

| More

Joseph Smith has been educating buyers on the finer points of Texas Repo Homes purchase at Foreclosure-Repo-Auction.com for over four years. Click here to visit and read more advice on finding Repo Homes.

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Real Estate Articles Articles Via RSS!


Powered by Article Dashboard