Purchasing a cheap home requires little more than the ability to properly negotiate the purchase and determine the best price for the additional services for such necessities as legal fees and home inspection. If you are a qualified inspector, it may be possible for you to skip the home inspection all together, depending upon the requirements of your mortgage lender.

Instructions
Shop for the best possible interest rate among potential lenders. Lenders may try to add additional interest to the home loan depending on your personal circumstances. When shopping for a loan, don't just look at the interest rate. Take into account the closing costs, origination fees and other added-on fees associated with the acceptance by the lender of the loan. Factor these costs together to determine the most inexpensive mortgage lender.

Consider the purchase of a home subject to foreclosure or short sale. These sale options can significantly reduce the cost of a home, and can be found by enlisting the services of a real estate agent or asking the mortgage loan processor at the bank where you have obtained your mortgage loan. These loan officers often compile lists of homes which are currently in foreclosure or which are being offered on short sale. A short sale, however, is not the same as a foreclosure. Short sales indicate an agreement between the lender and the seller to take a moderate loss on the sale of the property to avoid the fees and damage to the seller's credit rating which occurs if the home is foreclosed upon.

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Visit the house you are interested in purchasing and take note of all the deficiencies of the house. These will be important during negotiations. Of particular importance are obvious structural defects of the home, but nearly as important are such things as landscaping, the condition or cleanliness of the home's siding, and even cracks in the driveway. All these can be used during negotiations to reduce the home's price.

Make an offer on the home which is likely to be rejected. Depending on circumstances with the current owners of the home, they or the bank through which the home is owned, may entertain the offer, regardless of how low it is, or counter offer with a price below the original asking price which is acceptable. Even if the offer is rejected, that does not preclude you from making another offer later.