Everyone wants a “deal.” There are ads out there that make it seem easy to get a “deal.” Unfortunately, “deals” are hard work. You have to sift through a lot of homes and look for one that fits you, qualifies for a mortgage that you can obtain, and be ready to make quick decisions.
Consider the following:
Everyone would like to see a person that is handy and going to live in the home for a while, be able to purchase one and do just that. However, the banks risk is obviously greater, and they won’t make loans on homes that need more than minor work. There is, of course, the renovation loan (203K as an example) that is designed to help in this situation, but because of the extra risk involved to the bank, the credit score usually needs to be higher and the reserves greater in order to get this loan.
In addition to the credit issues, the bank also wants to make sure that the work is done meeting relatively high standards so that the “handy” home buyer can’t do the work themselves, but has to hire a contractor that will be paid on a draw. Often the very person that has the ability to renovate the home as a home owner, and theoretically get a “deal” is the last person that will.
Of course there are other ways to get “deals,” such as HUD homes, bank foreclosures, “short sales” and others. I’ll examine some of the issues with these later. In the meantime, know that the right real estate agent can guide you through the maze and that the “deal” is in finding a home that satisfies your needs at a price that is acceptable to you.
Comments and questions are always welcome,
John
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