Need advise on buying foreclosure as 1st time home?
Submitted by Paulax on Thu, 04/17/2008 - 9:54am.
Can you advise me if it’s ok to buy a foreclosure house as a 1st time home. I am not looking to invest. I am just trying to buy a home for me and my family.
Would a foreclosure house be cheaper in value. Me and my husband have been approved for a loan. What are your suggestions on this matter.
Thanks in advance for any advice you can offer.
Comments:
Hello Paula,
It depends. I think the most important thing you need to consider before you make a purchase is what you want out of homeownership. Are you looking to make a killing on appreciation? Just tired of landlords? Or perhaps its a dream thats finally in reach?
If the decision is strictly financial, and you are willing to make tradeoffs in location, size, layout, etc. then pursuing a foreclosure as your own home can definitely be worthwhile. With some hard work you should be able to save 10-30%. Do your research and pay attention to what you buy.
If the decision revolves more around your desire for a specific type or feel of home, then I recommend finding the best Realtor you can, someone who has lived in the area a long time, knows the neighborhoods, the schools, etc. It’s a buyers market now so take your time until you find the house you love.
Foreclosures are sold at a discount, and can make excellent short or long term investments. But it does take work to get the discount, and you may not find a property that is both a great deal AND a perfect fit.
Best of luck in your search.
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