Loan Prequalification The First Step For Any Home Buyer

Dated: 06/15/2017

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So you’re ready to start the house hunt and are considering foreclosures or other distressed properties – that’s fantastic! But before you start scouring for deals, there’s one important thing you need to do: get pre-qualified for a loan. 

There is absolutely nothing worse than finding the property of your dreams only to find out that you can’t actually afford it. Additionally, with competition in Denver so fierce, the prequalification step may put you at the head of the line when it’s time to make an offer.

While a loan pre-qualification isn’t a commitment from a lender to provide you with a loan, it will provide you a ballpark figure of what you can afford to pay for a foreclosure. In other words, first know what you can spend, then go shopping.

If you want to really prepare yourself for the pre-qualification process, take a look at the tips below:

  • Take stock of all your outstanding debts. Include the monthly payments. Also make a list of all your income sources and assets, including amounts.

  • Find a lender - not a mortgage broker - that you wish to do business with.

  • Let your lender know you are interested in bidding on a foreclosure. The lender will then review your debt and income lists and give you a ballpark figure of the loan amount you may qualify for.

  • Hire a pro who’s experienced with foreclosures to show you options in your price range.

While it’s the last step we list here, hiring an experienced real estate agent who knows the ropes when it comes to foreclosures is actually one of the most important steps in your search. 

Ready to see what’s out there? Give Metrowest a shout – our experienced pros would love to show you around.

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Ken Blevins

Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 23 years of experience in collections, foreclosure/bankruptcy, los....

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