With so many foreclosures entering the real estate market, potential buyers feel that getting a Fountain Hills foreclosed home is a great bargain, but buying a foreclosed home isn’t without it’s risks. Research the pro and cons to see if you are a good candidate. There are several determining factors to consider before you make the leap.
Are You a First Time Buyer?
If you are a first time buyer you may think twice. Making a commitment to buying a home is a big step financially and emotionally. Being new to home-ownership takes a while to sink in and learning what is required to maintain the upkeep of your home is usually enough to take on for the new home owner. Buying a foreclosure could be more responsibility than you are ready for.
Financing or Cash?
If you’re buying a foreclosure, realize that getting a home loan with less than a 20% down payment could be difficult. Foreclosed properties are often neglected for months by struggling homeowners or even trashed when the frustrated owners were forced to leave. With that being said, these homes most likely won’t qualify for FHA financing, therefore getting a conventional loan may be your best bet. Also about 40% of buyers buy with cash so competition can be tough!
“You can’t judge a book from it’s cover” foreclosed homes can have many hidden defects. Make sure you hire a qualified home inspector to check out the property. Since most foreclosures are sold “as is” you usually won’t be reimbursed for repairs but at least you will find out if there is any major work needed. Having a good network of reliable contractors that you can count on is a must!
Want to learn more about buying a Fountain Hills foreclosure? Call/Text 480 888 6708 or email me for a quick response to all your questions.