Just because you have a low budget doesn’t mean there isn’t a great home waiting for you to discover it. However, shopping for a home on a budget can be challenging. You may feel nervous telling your realtor or you may not know how to approach your bank about it, either. Just remember that there are plenty of people who buy houses on a budget frequently, and you won’t be the first or the last to do so. And don’t forget to follow the tips below for great results!
Foreclosures are usually homes that were repossessed by a bank or lender because the owner could no longer make mortgage payments on the property. The bank is then trying to sell the property to get it off their hands and recoup the money they lost on financing the home in the first place. Because of this, however, another bank isn’t likely to finance this type of purchase, so you may not have the benefit of a loan to help you out. Also be aware that these homes are almost always left in disarray and poor conditions because the owners couldn’t afford to keep up with repairs – or, in some instances, were angry about the foreclosure and trashed the home before leaving.
Look for As-Is Homes
Once again, you may have trouble getting the bank to approve a loan for an as-is home, but if you’re in good standing with your bank you may be able to qualify for assistance with one of these properties. These homes may have only minor cosmetic damage, but in some cases, they could have serious structural or roof problems that will need to be repaired at your expense. You also must pay for the cost of a home inspection yourself on an as-is property. If you plan to buy an as-is home, be prepared to spend a long time shopping around before you find a home that doesn’t need anything too significant in terms of repairs. Otherwise, you may end up going way over your budget in the long run.
Stay Up-To-Date on Neighborhood Changes
If you live in the city, think about neighborhoods that seem to be transitioning from low-quality to better-quality. While you may have to deal with more growing pains than you might prefer in these areas, at least for a few years, chances are good you can get a great home in a neighborhood many outsiders aren’t considering yet. In a little while, these neighborhoods will improve and you’ll be living in a great part of town. The same is true of suburbs surrounding cities that are expanding. Give it a few years, and you’ll be closer to town than you used to be.
Are you looking to buy a home? Get started with this custom home search. I am a local area expert in Glendale, Peoria, AZ and surrounding areas. I can help you find a home that meets your needs and lifestyle.