Should I get Pre-Qualified to Buy a Foreclosure?

While purchasing a foreclosure is a bit different than a traditional property, it’s never a bad idea to be prepared. And when it comes to purchasing any type of home, one of the most important ways to prepare is to get pre-qualified. Regardless of the type of property you’re buying, getting pre-qualified is a great first step.

 

Is pre-qualification the same as pre-approval?
No. Pre-qualification is more like a practice run for taking out a home loan. Getting pre-qualified will give you a great idea of how much you can afford, and it’s a pretty quick process that can be done in minutes.  Though not a binding agreement, pre-qualification is a great first step for homebuyers, and it shows sellers that you’re serious about making a purchase.

Why it’s important
The main benefit of prequalification is that you’ll get a clearer picture of how much you can afford. Once you understand the general amount you have to work with, you can start to narrow down your choices and focus on properties within your price range.

What you’ll need
Since the point of getting pre-qualified is to find out how much you can afford, you’ll want to have current, accurate financial records available. Proof of employment and income, as well as tax returns and credit reports, are recommended.

Ready to start checking out foreclosure properties in the Denver area? Contact Metrowest today – our experienced agents specialize in this type of sale and we’d love to help you start the process.

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