Trevor has expained the pitfalls and I went through all of them.
My advice is to save up 10-25% for the downpayment..... maybe another 10-15 for the closing costs--assuming a house around $100,000..... Add a great credit score and a good credit history, a steady job... and if you are buying in an area where a re-occupancy certificate can only be issued after the house is done up to present code, you could be in your house in 5-8 months!!!!
Have patience my freind, and good luck.
Take your time and look for home that is NOT a foreclosure.
I've been helping First Time Buyers for 22 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.
Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.
For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."
And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.
There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!
Feel free to set up a MLS search from my link below. You can choose what area,price, etc. Any foreclosures that come on the market will automatically be sent to your email. As for purchase procedures, we do have a step by step process available for you as well.
I hope this helps.Feel free to contact me with any other questions.
Pat Palmer-Broker Associate
Keller Williams Boca Raton
2424 N. Federal Hwy. #318
Boca Raton, FL,33431
There are still many great foreclosure properties and some great deals to be made.
I could send you some listings to view.
If you could send me your search criteria such as location, price,...
As I'm sure you are aware, buyers do not pay the agent commission, only the seekers do.
I look forward to hearing from you soon.
Engel & Voelkers