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Getting a home mortgage for foreclosed properties may seem like a good option especially for borrowers who have limited funds to buy a house. Foreclosed homes are properties that were taken by the bank or the lender because the loan went into default.
However, there are things that you need to remember before applying for a home mortgage on foreclosed properties. We've come up with a list of all the things that you have to remember when looking for foreclosed properties.
Tip No.1: Check for Any Damage
You need to be very cautious when buying a foreclosed home. Chances are, there is already some minor damages on both interior and exterior parts of the home. Check for any water damage or any patch of dirt on its walls. You should also check the framework of the house and determine if termites had made any holes in it. Broken windows and graffiti are common on foreclosed properties, so you also have to check on that.
Tip No.2: Know the Most Recent Renovations Made
You need to have a list of all the renovations made in the house for the past five years. This is quite important especially if you would prefer the house's original design. Ask the seller for all the most recent renovations made in the house and see if they're still in good condition. It is important that you know what you're getting into once you apply for a home mortgage.
Tip No. 3: Inspect the Property
Aside from the house's interior and exterior parts, you also have to check the whole property as well. You might want to hire a professional to check if the plumbing and the sewage system are in good condition. Keep in mind that you will be spending hundreds or maybe even thousands of dollars just to have them replaced. So make sure that you check on the before it's too late.
A foreclosed house can be one of the most practical ways to finally obtaining a home. However, you have to remember all these things before you apply for a home mortgage. Getting a foreclosed house will be much cheaper than getting a new house, but you do have to worry about the possible repairs. Finally, an important point to remember is that you can finance the repairs that may be necessary with your mortgage loan.
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