How Do I Secure Financing?

It is best to secure financing to buy a foreclosure early in the process. Unfortunately, a lot of lenders will not give you loans unless they know the specific property you are looking to buy and its history. They may make an exception if you can prove that your financial situation can back up the loan you need. Some will grant you the ability to spend up to a certain amount, and that can inform your entire search.

This is why it is important to investigate the property. If you have time to obtain them, forward the results of the title search and a statement from an appraiser and/or contractor as proof of the value of the property. Find out as much as you can about the area, and forward any pertinent property data and statistics to the lender.

You will need the information you gathered during your investigation of the property to secure financing in most cases. The clean title search and all of your calculations regarding the value and cost of the property can be great evidence for the bank or lender to provide you with a loan. You may be able to use the price comparisons you found through our service to prove that you found a great value.

Any positive information you obtain about the property can increase your chances of being improved for a loan. This can include information about the region as well. Research the local crime rate and ranking of schools in the area. Mention the proximity to public commodities, like transportation services and parks.

The good news is that showing the bank that a home is a great, valuable purchase might even lower your down payment or interest rate. You should be in good shape if you lay everything out as clearly as possible for the lender. Having your financing approved before the sale is extremely important. You may be asked to prove your ability to pay.

Securing financing before the sale is particularly important if you are buying a property in an area where judicial foreclosures are the norm. In this case, you will have to prove not only to the seller but to a judge that you have the ability to pay. Make sure you bring any documentation proving you have the finances to cover the sale price.

If you cannot pay your winning bid at the end of a sale or make a down payment on it, the sale will be overturned and you will lose all rights to the property. Your bid may also be rejected if you fail to prove your ability to pay. Make sure you find out if you are required to provide any documents, such as a mortgage loan document, as proof that you have financing.

While it is not required that you get a title search performed or hire professionals to assess the property, you may not be approved for a loan if you cannot prove that the home is a great value. Ideally, you want to provide the lender with as much information as possibly to clearly prove that the property is a worthwhile investment.