HUD homes can be a fantastic opportunity for first-time home buyers, especially if you’re willing to put a little work into the property. HUD homes are also a great option in areas where inventory is on the low side. While not identical to a traditional home sale, buying a HUD home isn’t particularly difficult. Here we provide a list of questions you should ask yourself before jumping into a HUD home purchase.
- Do I need a certain type of real estate agent?
Only real estate agents who are registered with HUD can represent homebuyers in the HUD online auction process. A registered HUD agent will be able to explain to you how the home buying process works, how long they’ve represented buyers, whether they will accompany you to inspect properties, and what special knowledge he or she has gained from past experiences.
- Is a home inspection required?
Because HUD homes are sold as-is, you could end up purchasing a home in need of repair. HUD typically does not warrant the condition of its properties nor does it pay for repairs. It does, however, urge potential buyers to get an inspection prior to submitting an offer. HUD home or not, it is always best to get a home inspection.
- Do I need to get preapproved for a mortgage loan? As you prepare for your HUD home purchase, it is definitely a good idea to get pre-qualified for a loan ahead of time. This not only shows HUD that you’re a serious buyer, but it allows you to get a real idea of what you can afford to spend, taking into account any repairs that need to be made. There are some great incentives for buying a HUD house that you should research, including the $100 Down Payment Incentive program or the Good Neighbor Next Door program.
Are you considering checking out HUD homes in the Denver metro area? Remember your first step is finding an experienced agent. Metrowest specializes in these types of sales and would love to help you start the process. Give us a shout today!