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Stafford Homes For Sale - Factors to Consider When Buying Stafford Homes for Sale

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A home for sale refers to a house that has been put on foreclosure. With the fluctuating economy, many people in Stafford find themselves losing their jobs and cannot in turn pay their mortgages. Some people are also unable to service their mortgages due to other factors such as ill health, accidents, and unforeseen expenses among others. When this happens, their homes are put up for sale by banks and other financial institutions which want to recover the monies they had lent to these homeowners.

The financial institutions are not out to make a profit selling the homes as their main goal is to recoup the monies they gave to the homeowners. Therefore, the houses are usually sold at prices that only cover the debt owed by the borrower and the cost of the foreclosure procedures. Thus, it is not rare to find homes being sold at rates that are way below their current market. The low prices are deliberately set by the lenders, who want to dispose off the homes as fast as possible and recoup their monies. Many prospective homebuyers and investors in Stafford are attracted by the low prices.

Investors are going for Stafford homes for sale because they stand to gain a large profit. Nowadays, it is not difficult to locate foreclosure homes thanks to the internet. Many Stafford county websites provide information on existing and upcoming foreclosure homes for sale. Investors are in a rush to buy these homes either as their personal homes, as vacation homes or with intentions of refurbishing and putting them up for sale at their real market value, which is higher than what they are offered at during the auction.

Before you go for Stafford homes for sale, it would be a good idea to know the amount of mortgage you can afford. An easy way of determining this is to gauge your monthly housing costs against your gross monthly income. Then, weigh the total income against the total expenses and divide the result into your gross income. The payments from this calculation should not exceed 36%.

Investing is real estate is usually out of reach of many people because a lot of money is required. However, if you are looking to invest in real estate but do not have large amounts of capital, buying Stafford homes for sale is the best way to get into this industry. The homes are sold at 20 to 30 percent cheaper than their market value and this is why buying them can be very profitable.

However, before you purchase such Stafford homes, you have to consider a number of things:
1) Condition of the Homes
Before buying Stafford homes for sale, make sure you inspect them a few days before your purchase. This will give you a good idea on the value of the home. You so not want to purchase a house that will require a lot of refurbishment to the extent that you go at a loss.

2) Tax Liens
Find out whether the homes on foreclosure have any tax liens associated with them. If you purchase a home with tax liens, you will have to pay the liens to the respective authorities. If the home comes with tax liens, make a prudent judgment on the value of the home to avoid incurring losses.

3) Down Payment
While purchasing Stafford homes for sale is cheap, you will need to have a certain amount of money beforehand, usually 5 to 20 percent of the cost of the home during the auction as down payment. Find out the prerequisites of the auction in advance to be well prepared. You can expect better rates if you provide a higher down payment. Apart from these payments, keep in mind there are other fees such as application fee, title search, appraisal fee, HIPs fee, and insurance fee. You may also be required to settle the remaining balance within 3 days to one week from the day of the auction.

Stafford homes for sale are affordable and with the above facts in mind, purchasing them will be smooth and easy. If you are thinking of investing in Stafford real estate, make sure that you are pre-qualified for the homes for sale.

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