How to Get Pre-qualified to Buy a Foreclosure

Getting pre-qualified for a home loan is absolutely essential when trying to buy a foreclosed home. Foreclosures are often houses that are priced for a quick sell, and therefore may not be on the market for a long time. Being pre-approved for a home loan can help speed up the process on making an offer on a foreclosure and getting the best deal possible.

Difficulty: Moderately Easy

Instructions

1. First, find a home interest rate that suits your needs at a bank that you trust.

2. Tell your home mortgage officer that you are trying to get pre-approved to buy a foreclosure. They will run a credit check on you in order to assess the risk of approving you.

3. Provide the loan officer with your employment history. They will likely also ask you for a copy of your most recent pay stubs.

4. Sometimes a credit analysis alone is not enough; if this is the case, gather supplemental documents such as renter's history, cell phone bill records, or cay payment records. They are looking to see that you are fully capable of paying bills responsibly.

5. While you are waiting your pre-approval to buy a home or foreclosure, watch the interest rates closely. If it gets low enough, consider locking it in at that percentage so that when the paperwork is done, you will be looking at a low interest rate.

6. Once your loan is pre-approved, you are now ready to make a bid on your foreclosure.

Resources

• How to Buy a Foreclosure
• How to Find Foreclosed Homes