The process of buying a foreclosure is more complicated than buying a traditional home. There are typically more steps throughout the home buying process. However, regardless if you are purchasing a foreclosure or not, it is always in your best interest to go through the preapproval process. Continue reading and discover a few reasons why you should get preapproved when buying a foreclosure.
You can act quickly
Cash buyers can make offers quickly when foreclosure homes hit the market. As such, if you are not a cash buyer, you are at a real disadvantage. If you need a mortgage on your next home, you should get preapproved so you can act quickly on homes that just hit the market. If you are not preapproved, you could miss out on homes that may be perfect matches for you.
You know how much you have to spend
After you receive a preapproval letter from the lender, you will know exactly your price range. This will prevent you from looking at homes that fall out of your price range. In other words, this will narrow down your home search to only homes that you can afford.
Makes you a favorable buyer
Sellers want to work with individuals they know have already qualified for a mortgage. They do not want to worry about whether or not you can qualify for a loan on the home. In most cases, if a seller receives multiple offers, they are going to be more inclined to choose the buyer who has already gone through the pre-qualification process.
