When you’re buying a new home, the various associated costs might seem daunting. And, while a brand new, fully updated home might be your dream, choosing a fixer-upper instead could be a great way to cut your costs. Read on to see if a fixer-upper could be the right choice for you.
Before we dive into more detail, let’s take a look at some general pros and cons of buying a fixer-upper:
Next, let’s look at some more detailed considerations about buying a fixer-upper:
If you’re hoping to buy your new home sooner rather than later, a fixer-upper could be a good choice for you. And, if you’re a first time home buyer, there might be a few roadblocks in your way, such as low credit scores or not enough money saved for a down payment.
Because they might need a lot of work, fixer-uppers tend to get passed over by home buyers who can afford to buy a more move-in ready home. Also, you can still apply for a loan on a home that needs work, and the down payment and credit score requirements tend to be more lax, and therefore more accessible.
When applying for a loan for a fixer-upper, you have some different options than you would when applying for a move-in ready home. These include various types of renovation loans. A renovation loan is a type of loan that allows you to finance your home and your home improvements at the same time. This gives you the benefit of lower interest rates and paying off your improvements over a longer period of time. A few types of renovation loans are:
These types of renovation loans can help you cover your mortgage payments if you have to live somewhere else while you’re making your repairs.
Buying a fixer-upper with only minor repairs needed is much different than buying one that’s been completely neglected and needs a lot more work. You should hire a professional contractor to perform a thorough inspection of your potential home before you buy it. This is always a good practice, but especially if you’re going to be making any repairs yourself.
You should also bear in mind that even the most simple-seeming repairs can end up taking longer and being much more complicated than you expect. This is just in the nature of remodeling, and of most do-it-yourself projects. It’s best to go in expecting the unexpected.
Buying a fixer-upper is a great way to ensure that your new home embodies your unique personality. You can make modifications that speak to you, rather than feeling stuck with what the last family in the home left behind. Rather than searching far and wide for your dream home, you have the chance to basically build it yourself, which can be the change of a lifetime.
With rolling hills, beautiful landscapes, and diverse topography, Spokane and the surrounding areas are some of the most desirable in not only the state but