The Questions
- What is PMI?
- How can I find out how long a property has been on the market?
- Do you recommend first-time buyers to look at foreclosure properties?
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PMI is Private Mortgage Insurance. If you have less than 20% for a down payment when buying a home your lender will require PMI. The PMI is an insurance policy that protects the lender in case you default on the loan. PMI typically runs from .5% to 1.0% of the value of your mortgage.
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How can I find out how long a property has been on the market?
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If the property is a listed property any realtor who is a member of the MLS can access this information. Feel free to contact me if there is a specific property you have in mind.
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Do you recommend first-time buyers to look at foreclosure properties?
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One thing to keep in mind on foreclosed properties is that very often they are in bad condition. You are allowed to have them inspected but the banks sell them as is. This means that any repairs that have to be done the buyer is paying for after closing. If you are going to look at foreclosures make sure that you have a ready supply of cash available for repairs and upkeep. Most first time buyers do not have enough cash available to make a foreclosure a good investment.