Bank Foreclosed Real Estate
Forget the infomercials here's how I did it

When I was looking to purchase a home I was told not to worry I don't need any down payment I'll get approved no problem. So happily I talked with my local mortgage broker and got basically the same answer but when I started looking at the big picture I started to get really nervous.

Know this: lenders are being much more flexible these days by not requiring the traditional 20% down on a new home, you should know if you borrow more than 80% of your home's value you'll most likely have to pay private mortgage insurance. This protects the lender if you where to default on your home loan. That tends to cost .5% to 1% of the total loan value. 

Piggybacking- Another option is to piggyback two loans. If you take out one loan for 80% of the cost and another for 20% (or for 15% and pay 5% in a down payment), you can avoid private mortgage insurance. The interest on both loans is generally tax deductible, but the rates on that second loan are going to be at least 9% which doesn't really help your bottom line one bitIf you wait to amass the 20% down payment, you can avoid these extra costs, qualify for a lower-rate loan and keep your mortgage payments much lower, which gives you a lot more flexibility in the future. 

This creates a lovely paradox now doesn't it? While you are saving house prices are climbing. Two things we have to keep in mind here, first is house prices are going to stabilize or even go down over the course of the next few years. In a slow housing market a down payment is even more important due to the fact that it takes a few years to start building equity and you make need that equity if there is an emergency or if you need to move.

Second thing to consider is all those people who got sucked into variable interest loans. A variable interest loan will fluctuate with market interest rates throughout the term of the loan. If interest rates fall, your monthly payments will come down. If interest rates rise so will your mortgage.

With rising interest rates some folks are being forced to foreclose on their homes. This whole train of thought brought me to this conclusion. If I could find a good quality bank foreclosed real etate I could get more house for less money and build equity right off the bat while minimizing my overall cost of living. So

Sounds too good to be true I thought. Well to be honest I didn't know where to start. I was all pre-approved ready to go with 10k in the bank and counting. I contacted every financial institution I could find, told them I was pre approved and ready to go. I contacted government and local agencies and even bought a list of bank foreclosed real estate on the internet. After getting all my lists compiled I started looking and to make a long story short I ended up finding the house I was looking for off a list I found off the internet! Here's the url

The key things to remember are take your time, the market is only going to get better and save as much money as you can, the more money you have the better the interest rate you'll get

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