Planning for the future always includes property ownership at some point but with
the rise in the number of affordable foreclosed houses in the market today, planning can start right away. Tenants with a good credit score and gainful employment should start to reassess their situation and see if it would be more economical to purchase a distressed property rather than give up money for rent.
Foreclosed houses may well be the first step a person can take to secure his future. Buying an affordable foreclosure translates to instant equity and great savings. But buying distressed homes is not without its set of risks and problems. When considering this big step for the first time, people should obtain as much knowledge as they can.
A Home Loan Pre-Approval
Buyers of foreclosed properties should keep their finances in order and submit to a home pre-approval process. Your own bank can make the assessment of your personal finances and determine if you are qualified to take out a housing loan. Make sure you have a spotless credit record and a stable job as these are two important details the bank will look for when considering you for a loan.
Obtaining a loan pre-approval does not a guarantee that you can purchase a foreclosed property immediately but it is a vital step. You will be able know the amount you can borrow which will also be your budget for buying a home.
Assessing Your Needs
After obtaining your pre-approval and before you start conducting your search you must spend time assessing your housing needs based on your budget. Consider the people who will reside in the home, their ages and lifestyles. Then consider the kind of neighborhood you want to live in. If you plan to relocate to a different state, make sure you read up on the place and determine its level of livability. Find out the general cost of purchasing foreclosed houses in your preferred area and see if it is something you can afford.