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.

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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