We have fewer foreclosures here in the Lexington area than most other parts of the Country but there are still some to be considered. You might look at those where the bank has already taken over the property and is anxious to get rid of it. I don't personally like dealing with foreclosure transactions because of the many problems that develop, but strategically, it could lead you to a very significant bargain property.
When buying a new home, even in a buyer's market, keep in mind that your emotions can significantly influence your purchase decision. The buying experience, in general, tends to be emotional and a home is one of the largest purchases that most of us make. Thus, you want to manage your emotions by being well prepared.
There are a couple of very important things to keep in mind:
Determine the Amount of Home You Can Afford
The best way to determine how much home you can buy is to get pre-approved for a mortgage loan by a competent Lender. Not only will the Lender introduce you to the different types of mortgages for which you may be eligible, but also will consider all aspects of your income and debt to be able to give you a loan amount for which you will qualify. Rates for thirty year fixed mortgages are at historic lows, but appear to be heading up so that's another good reason to consider buying now.
I recommend a thirty year fixed rate mortgage for most of my clients with a conventional down payment. Too many people have found themselves in financial difficulty after buying more home than they could afford by opting for one of the many unconventional loans offered in recent years. For more information, review my resources on Mortgage Rates.
Develop a Plan
Before you even start looking at homes, try to determine the elements of a home that are important to you and the characteristics of the neighborhood in which you want to live. Most Buyers think about number of bedrooms, bathrooms, and appliances in the kitchen. But perhaps the durability of brick siding, an unfinished area that can be converted to additional living space, or some special lot characteristics may be more important in the long run.
A neighborhood's location with respect to schools or shopping can be an important consideration but perhaps the quality of the homes and their appreciation potential may be more important for your family over time. Or a short commute to work in downtown Lexington may be appealing but a much better and feature filled home can be had for an equivalent price in the City Of Nicholasville.
In any case, be objective in developing your Plan before you begin your search and identify those priority features that you really want and need in a home. If you accomplish this at the beginning of the buying process it will put you on much sounder footing as you begin to look at the many exciting home values that have developed.
I will spend quality time with you, the Buyer, first getting you pre-approved for a loan and then, helping you develop a Plan to identify exactly what you want and need in a home. Then, we will execute the Plan together! To develop a Home Buying Plan, please call me today, (859) 509-0439, or if you prefer, Send Me an Email.
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