The Benefits

The benefits of purchasing a fixer-upper are obvious. The price is usually right, and if the seller wants a quick sale because of decreased interest in the home, you may be able to negotiate a really great price. Also, if you intend to flip the home after the renovations, the profit for the money and time you have invested can be quite considerable. The trick to getting these benefits, however, is knowing what type of property to look for, as well as having an accurate idea of the associated costs, and realistic expectations of the time and labor it will take.

What Makes A Great Fixer-Upper?

There are several features that may make for a great fixer-upper.

Location-Buying a home in a desirable neighborhood is always a smart idea, particularly with homes that require a lot of work. Purchasing a house in a sought after area can mean a greater profit margin for resale value.

Layout And Configuration-This is especially important if you plan to sell the home after the renovations are finished. Selecting a home that will appeal to the greatest number of buyers will get you the best price. Also, choosing a home with a layout that flows may save you a considerable amount on the actual renovation costs because you are less likely to need custom installations and work.

Condition-Ultimately the most important consideration is the actual condition of the home. Choosing a fixer-upper with only cosmetic problems such as damaged flooring or old fixtures and appliances, and in need of only a new paint job, can often have the greatest profit margin and require much less money and time.

Overall, when purchasing a home that needs work, getting a qualified home inspector’s advice and getting estimates of the cost of work to be done before making your offer can make all the difference.

Do Your Research

As with any major decision, knowing the facts about the housing and financial markets before making any major decision is of vital importance to protecting your investment. Review online the national mortgage rates for different types of loans. There are a number of sites where you can find this information, or you can ask your REALTOR® to point you in the right direction. In general, fixed rates will be higher, but as they don’t fluctuate over the term of your loan they may be a better choice for those who need the stability of fixed payments. Also when comparing interest rates, be sure you are comparing the APR, or Annual Interest Rate, to ensure that your comparisons are on equal ground.

Also keep yourself informed on some of the riskier options that may be out there. ARMs, interest-only mortgages, no-doc loans, and 100 percent mortgages are some of the more aggressive loan types out there. They may be appropriate for your situation, but they present more risk for the lender, and are not always a wise financial choice. They also often come with higher interest rates that may return to haunt you later.

Preparing Yourself To Get The Best Rates

Understood or not, ultimately we all want to get the best interest rates for our mortgage in order to save money. No matter what type of mortgage you choose, there are a few steps you can take to get the best rates. You can reduce your rates by:

Saving a sizable down payment

Establishing a pattern of paying your bills on time

Reviewing your credit report and correcting any errors

Shopping around with multiple institutions and different types of lenders

Armed with these simple facts, you can protect yourself from bad financial choices and remain aware of the steps you should take to get the best interest rates.

Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating. The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

Credit Blemishes

When life unexpectedly takes a turn for the worst, it’s not always possible to come out without a few bumps and bruises. Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come. Whether it’s from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life. The good news is that they no longer have to prevent you from becoming a homeowner.

Give Yourself A Little Credit

After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account. This can be accomplished by applying for a credit card and maintaining a responsible use of the account. If you aren’t approved for an unsecured card, you can always apply for a secured credit card. Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that – in the past.

Clean Up Your Credit Report

Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies. Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion. If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness. In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

Save Up For A Down Payment

Some homebuyers often qualify for a mortgage with down payments as low as five percent (three percent for FHA loans), but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home. A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan. If you have past credit problems, check with your lender about specific down payment requirements and start saving!

Creative Financing Options

If you’ve exhausted all of your conventional efforts and are still turning up empty, don’t give up just yet. Alternative financing is an option that many homebuyers use to purchase a home. Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

Just  a quick note to let you know how much we at Web-Sites-For-Less.com enjoyed working with you on this project! By combining our 10+ years of real estate website experience with the state-of-the-art WordPress content management system we have developed a beautiful, easy to maintain real estate marketing system for you.

By including the Northwest Montana Association of Realtors MLS-IDX search function we have given your clients access to virtually all of the property listings in your area. Later this year we believe the NMAR will partner with an MLS-IDX provider that will offer “auto-population” of information for your own Featured Listings — an amazing functionality. We will keep you abreast of any developments.

With our premium Search Engine Optimization Webmastering service we will continue to monitor your rankings in the four major search engines — Google, Bing, Yahoo and Ask, making adjustments to the SEO as needed. As with your previous site, this service will help drive more traffic to your website — resulting in more sales for you and you clients. You continue to rank extremely high for the search term “western Montana real estate” as well as several others.

Thanks again for the opportunity to build this amazing new website for you — It’s been a great experience!