The 5 biggest mistakes Wisconsin buyers make when buying foreclosed homes in Appleton and the Fox Valley………..
As we are all well aware, purchasing of foreclosed homes represents a large portion of the moving housing market today in Outagamie, Winnebago and Calumet County in Wisconsin. It has become a large enough portion of home purchasing that whether a buyer is intending to buy a foreclosed property or not, chances are they will find themselves involved in negotiating with a bank, lender or asset management company either as the seller or on their behalf.
If you’re someone, especially if you’re a first time home buyer, that is planning on entering the Appleton or Fox Valley real estate market as a buyer in the next twelve months………..you must take note of these five mistakes a lot of buyers are making and keep yourself from their financial pitfalls.
1. Not conscious of the property condition. As mentioned a lot of buyers in today’s market our first time home buyers with little or no down payment. That means they most likely need to use FHA, VA or USDA as these products offer some of the most little or no money down mortgage terms. That being said the property must comply with HUD standard to qualify for financing. In short………you could qualify for the loan, but that doesn’t mean the house you want to buy does.
2. Don’t get pre-qualified for your home purchase prior to shopping with a realtor or attending open houses, etc. First off, most sellers and/or listing agents involved in a short sale or foreclosure will not even talk to you without a pre-qual letter from an established lender in your hand. By not doing things in order, you may lose out on that sweet deal.
3. Not concerned with inspection contingencies. This might be easier said than done. Most “owners” of REO (or foreclosed) property are reluctant to allow an inspection contingency or for you to get an inspection. The want to sell the property “as is” and this can be even more volatile since more REO’s do not have the utilities on. BUYER BEWARE—-Don’t buy a lemon! Remember as well, there is plenty of inventory out there–you don’t have to compromise on value.
4. Don’t retain a realtor for their “buyer side”. Get yourself a good realtor that represents your best interest, NOT the seller’s. Sean Connery’s character, Jim Malone, in The Untouchables might have said it best, “You always make sure you bring a gun to a gun fight”. That nice person standing in the kitchen at the open house is representing the seller NOT you, don’t kid yourself for one second about their intent. If you’re not sure how to go about shopping for a realtor, asked your trusted mortgage advisor—-if anyone knows which realtors know what they’re doing, it’s the mortgage pros in your neighborhood.
5. Don’t do any homework or get a referral for a Appleton mortgage lender. Get yourself a good lender that is steeped not only the best mortgage vehicles for these type of properties but one that is familiar with this process, as it much clunkier than the traditional buyer/seller transaction. There a lot more cooks in the kitchen and a lot more levels of red tape. Have a Fox Valley lender that will protect and advise you through the entire process.
You follow these five steps and you’ll be able to take advantage of this distressed market in Appleton and teh surrounding Fox Valley, Wisconsin area and put you and your family into a great financial position.
Happy Brick Kicking!
If you or any of your loved ones have any questions regarding home loans in the Fox Valley or Applteon, WI, mortgage financing, home ownership or banking in general, please don’t hesitate to reach out.
Until next time-Yours Financially, Milly
Jamey Milheiser, NMLS #284184