| -> | | | | ho-hum to see the potential of a cosmetic fixer. |
| If you want to buy a home, but aren't sure if | | | | 6. Buy a home that's a major remodel project. If |
| your budget can handle soaring real estate prices, | | | | you want to live on Lake Washington, but can't |
| we've got good news. There are things you can | | | | afford a $2M home mortgage, consider buying a |
| do to stretch your buying power. With the help of | | | | dilapidated cottage on a fabulous lot with western |
| your real estate agent - and these 10 tips - you | | | | exposure. In time you'll need to gut the existing |
| can become a savvy home buyer without | | | | home and build from the ground up or contract |
| breaking your budget. | | | | significant home improvements. But in the end |
| 1. Get pre-approved for your home loan. This | | | | your property value will skyrocket. If your |
| means, fill out a loan application and go through | | | | carpentry and other construction skills are |
| the process of securing financing. That way, when | | | | well-developed, you can save even more and |
| you're ready to seriously evaluate real estate, | | | | accrue "sweat equity" during your remodel by |
| you'll know exactly how much home you can | | | | doing much of the work yourself. |
| afford. And you can prove to a seller that your | | | | 7. Don't discount bank foreclosures. One person's |
| offer is sincere. | | | | loss could be your gain if you buy real estate in |
| 2. Explore creative financing options. During the | | | | foreclosure. Although the search for a decent |
| home loan pre-approval process, ask about ways | | | | foreclosure may take a while, your realtor should |
| to get creative with your financing. Low down | | | | be able help. The U.S. Department of Housing and |
| payment options, first and second mortgage | | | | Urban Development ( can be an excellent |
| combinations and first time buyer programs might | | | | resource for foreclosed properties. Because HUD |
| help you afford more funding. Many lenders are | | | | houses are sold at market value, your best bet |
| now offering interest-only home mortgages; just | | | | will be homes that need cosmetic work or even |
| make sure you thoroughly evaluate the terms for | | | | major repair. |
| this type of home loan. Down payment grants | | | | 8. Land with a manufactured home. Sometimes, |
| are also available in some instances and might be | | | | to buy a home on a budget, you need to look |
| worth investigating or discussing with your realtor. | | | | beyond convention. Even if your wish is to buy |
| 3. Sell your existing home first. Although selling | | | | real estate, you may have to settle for a piece |
| your existing home before finding new real estate | | | | of property in an outlying area with a mobile or |
| to buy can be a little nerve wracking, any | | | | manufactured home. Discuss this option with your |
| inconvenience will be offset by your ability to | | | | real estate agent and try to keep an open mind |
| make an offer with cash in hand. Contingent | | | | about this possibility. |
| purchases are not the best when negotiating to | | | | 9. An older, smaller home. Older homes are |
| buy a home. Having your financing in order and | | | | typically priced much less than newer construction |
| your bags packed will give you the advantage in a | | | | and don't tend to create buyer bidding wars. If |
| competitive market. | | | | you can enjoy life in an older and smaller home in |
| 4. Look for vacant real estate. Perhaps a seller's | | | | a neighborhood or suburb off the beaten path, |
| job has transferred him out of the area. Or | | | | this could be your ticket to real estate ownership. |
| maybe a family purchased a new home before | | | | 10. The cheapest house in the best neighborhood. |
| putting their existing one on the market. In any | | | | You have your heart set on a specific - and |
| case, a vacant home could be just the deal for a | | | | expensive - neighborhood. Maybe it's the schools |
| savvy home buyer, so have your realtor look for | | | | that you're interested in. Or perhaps it's the close |
| vacant property in your preferred neighborhoods. | | | | proximity to downtown or the waterfront. In any |
| And keep in mind, the longer a house stays | | | | case, a budget-savvy buyer will look for the least |
| empty, the greater your negotiating power will be. | | | | expensive home for sale in the neighborhood. If |
| 5. Consider cosmetic fixers. If you're handy with a | | | | you're not in a hurry, you can even play the |
| paintbrush, a toolset and gardening equipment, | | | | waiting game to see what properties come on |
| consider buying real estate in need of cosmetic | | | | the market. Your real estate agent can be a real |
| fixing. Property that lacks curb appeal needs minor | | | | asset in this case by investigating potential sellers. |
| handiwork or the yard overhauled could end up | | | | Buying real estate without breaking your budget |
| being the home of your dreams for a price you | | | | will require research and compromise. |
| can afford. You just need to look beyond the | | | | |