Houses for Sale
There are plenty of houses for sale, but not nearly enough buyers to help the market rebound. Those who are ready to take the plunge into homeownership or buy investment properties can find plenty of good deals, along with home buying programs and special financing offers.
Finding houses for sale won't be a problem, but deciding which kind to buy can be a little tricky. While new home construction offers opportunity to design a house the way you want it, it can be more costly than buying bank owned properties or real estate short sales.
One good source for finding affordable housing is through Fannie Mae loan mortgage programs. Fannie Mae homes include residential properties that were returned through deed in lieu of foreclosure or repossession by loan default.
Fannie Mae Homepath is a financing program available to individuals and investors that purchase Fannie Mae foreclosure homes. A few of the benefits of financing through Home Path Mortgage is buyers are only required to provide a 3 percent down payment. Additionally, down payments can be obtained from outside sources such as grants, gifts, or financial loans from friends, relatives, charities, and federal funds.
Investors can also take advantage of the discount rates of Fannie Mae Homepath properties. However, this program grants 'First Look' rights to individuals buyers which prohibits investors from presenting purchase offers until the home is listed for 15 days.
Short sale real estate can be a good choice for people who aren't in a hurry to buy a house. Short sales are offered to borrowers that can no longer afford loan installments, but don't want to endure the foreclosure process.
Essentially, banks let property owners list their home for less than the amount owed on the mortgage note. Most lenders require buyers to obtain pre-approval before placing an offer on short sale homes.
Banks rarely consider offers for less than the asking price and usually don't respond to offers as quickly as private sellers. The process can involve multiple counter-offers before the sale is closed.
Foreclosure homes can be a good deal, but many require substantial repairs. Foreclosure real estate is sold through public auctions and banks. If properties aren't sold at auction they are returned to the lender. Once lenders regain possession they list properties for sale through realtors.
People that aren't comfortable buying houses at auction might find it easier to buy directly from the bank. Buying bank owned real estate isn't much different than buying from private sellers, but banks are usually less likely to negotiate on prices.
Nearly all the major lenders have bank owned real estate for sale. They also provide mortgage calculators to help buyers determine how much down payment is required and how much money they can afford to borrow.
It's helpful to comparison shop mortgage providers to find the lowest interest rate and closing costs. It's also helpful to create a list of amenities you would like to have and the area where you want to reside. This will help realtors locate properties suitable for your needs.
Although the real estate market is still in a slump it is beginning to show signs of rebirth. Taking time to find cheap homes for sale and learn about available home buying programs can help buyers acquire the best deal.
We offer detailed information about Fannie Mae home loan programs; government sponsored home buying programs; first time house buyer tips; and ways to find houses for sale in our home buying article library.