So You Want to Buy a Foreclosure - Part 2 - Preparing to Buy

Step # 1) Meet with an experienced Realtor® for a needs assessment consultation. This does not necessarily involve looking at property for sale. It does mean obtaining a through understanding of the process, gaining knowledge of the local market, and determining your long term goals. Determine your Realtors ability to assist you in obtaining what is best for you. Houses are big, expensive things that require more than a cursory knowledge of the implications of ownership and real estate investment is as complicated as it is lucrative. Much of the blame for the present “housing crises” must be laid at the feet of an inexperienced public and a poorly informed and greedy capital market. Your Realtor® should be a skilled consultant, experienced negotiator and have a through understanding of the processes required to close the purchase of your home. An experienced Realtor® will be able to provide you with recommendations for experienced mortgage counselors, and the myriad of other professionals that may be necessary to perform the necessary due diligence involved in your purchase.

Step # 2) Arrange your finances and obtain a pre-approval for any necessary mortgage loan. Arranging your finances means different things for different people. The great story you heard from your workmate or relative about their home purchase does not apply to you. Every home buyer is different. If you are a first time buyer looking to capture a great deal with depressed home prices, you absolutely must obtain a mortgage credit approval.

That means you must invest time to consult with an experienced mortgage loan counselor. Shopping for the just the best interest rates without understanding the loan and the costs of obtaining that loan is the mark of inexperience. If you have credit issues, you must improve your credit picture before you can buy. If you are an “investor” looking to improve your portfolio by investing in real property for long term hold, you probably have cash or an experienced lender at hand. Even in that case, you would be wise to discuss today’s financing with an experienced Realtor® referred mortgage counselor.

Step # 3) Learn about the neighborhood, or any neighborhoods you may be considering as home or investment. Many people believe that finding the perfect home can be done on the internet. While the WWW is good for research, you must understand the neighborhood in which you considering buying. Visit the local school, eat in a local restaurant, determine the capabilities of the local fire and police agencies. Check out sources of water and utilities, consider transportation and commute times. You may have certain requirements that need specific research, if so, do that research before you discover the perfect house. Lastly, knock on a few doors and speak to the neighbors of any property you are considering buying. Comments from friends and relatives may be invaluable, just do not buy a home because it is convenient to your brother or work place supervisor. The property you choose must be the best choice for you and your loved ones, regardless of its use as your home or as an investment.

Tomorrow: You have found the perfect house, now what?

Written by Larry D. McGee, Denver Realtor - Visit Website Sphere: Related Content