Your home is likely your largest expense. Buying an affordable home is a top priority for many people, but choosing an affordable home should be a key concern. Too many people overspend in this area and get into heavy debt. At the same time, fear of a mortgage should not keep you from ownership. Home ownership can help stabilize your finances by giving you an asset. It provides you with a great place to live for years to come. It also frees you from the hassle of renting.
If you are applying for immigration or citizen status by filling out USCIS forms (formerly INS forms), buying a home can help you show the USCIS that you are serious about staying in the US and becoming a part of the US. In fact, if you have a green card, you may want to start home shopping before you have to apply for green card renewal. A home can prove that you are serious about establishing permanent residency here.
If you are on a budget, the good news is that there are many ways to buy a home for less:
1) Foreclosure homes. Foreclosures are homes which have been repossessed because a pervious homeowner has defaulted on their mortgage. Several government agencies and most banks sell foreclosures and this can be a great way to buy a first home for less. Some government agencies selling foreclosures even have special programs to make foreclosures even more affordable for buyers.
2) Fixer uppers. Fixer uppers are homes that need a little work. Some homes require extensive repairs, and you will generally want to avoid these unless you are very good at renovations, since hiring contractors will add to the cost of the property. However, other fixer uppers require just some care – some fresh paint and good cleaning. These homes are often nicely discounted but many of the repairs can be done yourself.
3) Homes in rebuilding neighborhoods. Homes in neighborhoods that are just being revitalized often cost less than homes in highly desirable areas. Even buying a home just outside of a very desirable area can often save you significant amounts of money.
4) FSBO homes. For Sale by Owner (FSBO) homes are homes being sold by the owner. Often, the owner does not charge commission or some of the extra fees that real estate agents charge. In some cases, owners need to sell quickly because they are moving or need money quickly and in these cases, they are willing to offer an attractive price. If you consider FSBO homes, you will need the help of an attorney for the buying process and a good inspector and assessor to determine the value of the home.