Tips to get the best property deal out of your mortgage
Are you looking forward to making profits flipping properties? Or is it that you want to buy a second home for your family. Whatever maybe the reason now you are short on your finances and don't know how to get going with your idea.
Well here is how you are going to get the best property deal out of your mortgage.
Consider buying a bank foreclosed property. While foreclosures themselves are a sad thing once the deed is done these are some of the best properties that you could buy.
Banks do not want to manage properties. Therefore they are quick to offer large discounts just to get the deal off their books.
Often it's not the highest offer for purchase that gets accepted but the first one. If you are looking for a great deal be quick to act and get pre-approval from the bank.
Or look for properties that have been in the market for a long time. Their owners would be far more willing to sell them for a discount.
A hot property would receive a lot of enquiries via multiple listing services, realtors etc. One of the best tactics is to contact the owner directly. It would be even better to reach out to them before the property gets listed with a real estate agent.
Target absentee owners, people who may have inherited the property and are unsure about it. Talk them out of owning the property.
Lastly, remember that the more properties you see the more ideas you get about the ongoing valuation of the property that you decide to buy.
And remember the sale of the foreclosed property is generally 'as-is'.
With regards to the mortgage, you will have to heed to some other details as well.
Like, do not take anymore mortgage if you already have one for your own home. Not until you have paid it off up to 75%.
You will have to prepare for a greater down payment if you are looking to buy the property for investment purpose as banks wouldn't approve any mortgage for less than 20% in down payment.
Find low-cost homes. Areas where taxes are low. Keep your expectations realistic. Your investment will not churn out money now.
Be ready for maintenance cost that the property may incur. Calculate your margins and beware of any other extra cost that you may incur in form of renovation etc.