Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

Tips For Buying A Foreclosure

by Luke Fields

Are you buying your very first family home? If so, you may have considered buying a home that has been put up as a foreclosure. Foreclosures can provide you with a smooth buying process, while at the same time paying a price you can more easily afford. The process does differ slightly from the traditional home buying process, so you may need some extra information. These tips will help you through the process.

Get Preapproved

Are you looking for a home with traditional financing? If you want a mortgage, you should seek a preapproval letter ahead of time to ensure you will be able to make a serious offer. A preapproval letters shows that you have the funds and that you have something tangible to bring to the table. Of course, some banks may not offer funding for some of the homes you may be looking at based on their prices.

Understand that Foreclosed Homes Are Sold As-Is

When a home is sold as-is, it means you accept the home with all its current faults--for better or for worse. The seller cannot guarantee the condition of the property, including any potential structural issues or needed repairs. The bank will not fix these issues before you buy the home.

For this reason, it makes sense that you want to purchase a home inspection to have a foreclosed home inspected before you buy it. You will be able to identify the issues and determine how much money you must spend on repairs for your home.

Work With a Real Estate Agent

Simply because you intend to purchase a foreclosed home does not mean you should not work with a real estate agent. Real estate agents who have experience working with foreclosures understand your plight, and they can figure out what you are up against. They can also point you toward potential foreclosed homes you might consider for your purchase.

Get in touch with a real estate agent today to begin the process of buying a foreclosed home. Buying a foreclosed home can be a great idea if you want to buy a house that you love that is available at a lower price. You can consider a variety of factors before you buy the home, including financing, repairs, and your needs. In sum, it is worth it not to pass up a foreclosure as long as you know what to expect along the way. Contact a service, like  Buy Sell Your Ohio Home Group, for more help.


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.