Buyer Strategies for Today’s Housing Market
Although experts are saying that buyers have the upper hand in the current housing market, you should still try to find ways to make the most of the opportunities being offered by properties such as foreclosure homes.
For starters, you should become a good credit risk. Since the mess in the subprime mortgage market has resulted to the tightening of lending guidelines, it will certainly help if you improve your credit score.
Keep in mind that a couple of points can mean considerable savings. Improving your credit score can be accomplished by paying off all your existing debts or if not possible, reduce your debt to income ratio. You should make sure that your available credit remains to be at least 70 percent.
Another strategy is buying what you can only afford. You should not make the same mistakes that the other troubled borrowers made in the beginning. Also, you should consider shelling out more for your down payment. This will effectively lower the mortgage amount due each month, making your mortgage much more affordable.
When it comes to applying for a mortgage, you should make sure that you understand every term and condition of the loan. You must be choosy when it comes to determining which among the many mortgage products suit your needs and budget. Again, you should not commit the mistake of taking out an adjustable rate mortgage even if looks attractive.
Lastly, it is important for foreclosure buyers to negotiate the asking prices well. You can start by bidding below the list price. This is actually acceptable since it is a buyer’s market. Just make sure that you have done your homework and studied home values in the neighborhood to justify your bid.
All these strategies will help your foreclosure investing venture become successful. Of course, you should never forget to have the foreclosure home inspected to check for possible damages.