Home Buying in Ellijay>Question Details

Rebecca, Home Buyer in Ellijay, GA

What do you have to do to qualify for buying a foreclosure home? Anything special to purchase one?

Asked by Rebecca, Ellijay, GA Sun Jun 5, 2011

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6
Hi Rebecca,

I agree with the others the only other difference maybe that earnest money might have to be in the form of certified funds. The loan application or pre-qualification process is basically the same no matter how you are planning to purchase a home.

Hope this helps you.

Brian Wilder
Mountain AIre Realty
706 276-1122 o
1 vote Thank Flag Link Mon Jun 6, 2011
As others have said, actually qualifying for a loan is the same for a foreclosure as any other type of loan. However, there are some definite differences in buying a foreclosure that you need to be careful of. 1) is the home in good shape? If not, and it needs lots of major type repairs, be sure and discuss that up front as most lenders will require that the repairs be made before closing. 2) If there are repairs necessary and you do not have the additional money after your down payment, you need to discuss with the lender different types of loans that include funds for repairs. 3) Most banks will not pay for any repairs that is why the property is priced as it is, they have taken into account the repairs necessary. So many lenders will not loan on these properties that need something major and those properties are usually sold to "all cash" buyers that can then make the repairs after closing. So be careful in selecting a property and as someone else said, the key to a happy foreclosure purchase rests with the inspector. And if you are new at this, try and find an inspector that will put a price tag on the repairs. Most won't, but it is very hard for the average home owner to look at the list of repairs and have any idea if they will cost $3000 or $30000. Hope this helps. Joene
Web Reference: http://www.JoeneSells.com
1 vote Thank Flag Link Mon Jun 6, 2011
Qualifying for a foreclosure is, for the most part, really just like any other property. Most REO sellers do however require that you Pre-Qualify with their preferred lender in order to have your offer even reviewed.

In order to get Pre-Qulalified, you will need to have your most recent pay stub, most recent month of bank statements, and '09 and '10 W-2's and Federal Income tax returns. Be prepared to provide these when you submit your request. There is no loan officer who can do an accurate Pre-Qualification without seeing this documentation.

Unfortunately for everyone, there are some loan officers who will gladly issue you one without seeing any documentation. That is exactly why the REO sellers only accept Pre-Quals from specific lenders.



Regards,
Rodney Mason
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
Prospect Mortgage
Atlanta, GA
(404) 591-2453
NMLS #151088
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in AL & GA
Web Reference: http://www.rodneymason.com
1 vote Thank Flag Link Mon Jun 6, 2011
Besides what has already been mentioned, Rebecca, hire an agent to help navigate these waters. The lender has already set up their commission in the sales price so essentially it's free for you. You should also consider getting a very good inspector and maybe even hiring your own appraiser. Please call or email if we may help further. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM
1 vote Thank Flag Link Mon Jun 6, 2011
Hi Rebecca,

Qualifying for a foreclosure is the same as qualifying for any other real estate purchase. As Earnest Arp stated below, some foreclosure companies want you to qualify with their lender but they cannot legally require you to use them for your financing - you just have to cross-qualify with them.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sun Jun 5, 2011
Some ( not All) foreclosure companies require to qualify with them; if you are going to get a mortgage.
0 votes Thank Flag Link Sun Jun 5, 2011
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