Securing Financing for Foreclosure Properties for Sale
Securing Financing for Foreclosure Properties for Sale
The first step any buyer should take when purchasing foreclosure properties for sale is to secure financing. If you do not intend to make a cash purchase you must be pre-qualified for a loan by any bank or lending institution. Your very own bank can provide this but they will require some documents before they approve your request.
The approval of a pre-qualification request hinges on the requester's financial situation and credit reputation. They should be able to prove that they are capable of handling a mortgage. Examples of documents that need to be presented are income statements, tax returns, bank deposits and their social security identification. If the bank grants the request for a loan pre-qualification certification they will likewise indicate the amount of loan that can be borrowed by the applicant. This information can help buyers determine the type of foreclosure properties for sale they can afford to buy.
People buying a second home can use their equity on their first home as collateral for a new home loan. Banks are more open to providing a credit line for people who already possess equity as they are assured that the borrower has a fall back should they miss out on their monthly amortizations.
Credit Facility Offered by Banks as Property Sellers
Banks who offer foreclosures sometimes provide a line of credit for prospective buyers under certain conditions. This is actually a win-win situation for banks as they get to sell the property and gain new business in the process. Buyers can definitely treat one bank of lending company as their one-stop-shop for foreclosure properties for sale. Banks will also offer value added services to the buyers of their foreclosures which can include a title insurance, an appraisal, a pest certification and sometimes even taking on the cost of minor repairs on the home.