Foreclosure Home Purchase - Financing

Financing will be an important part of the home buying process if you are not paying cash. Before you begin shopping for a property it is best to be pre-qualified by a lender. For that you provide some information to a lender and they will see what loan size you qualify for, and about how much you will need to put down. The lender will typically be able to give you a pre-qualified letter at that time. Realtors will often want you to do this step before showing you homes. You will also usually need a pre-qualified letter to present with your offer to purchase. Here are some of the questions to ask a prospective lender:

• How large of a loan can you qualify for?
• How much do you need to put down?
• What closing costs are involved?
• Can the seller pay some or all of your closing costs?
• What are the estimated payments?
• Is there a choice of loan programs and how are they different?
• If the home selected needs any repairs, is that a problem?
• How long does it take to close a loan?

Please note that foreclosure properties may involve difficulties for financing. That is because it is common for a foreclosed property to have some deferred maintenance or repairs needed. The lender may require necessary repairs to be done before you can close the loan. And the seller will generally offer the property as is. Fortunately there are some mortgage programs that are designed especially for this situation. If you are considering a property that may need maintenance or repairs be sure to mention that to your prospective lender. The Homepath program is designed specially for Fannie Mae foreclosure properties so that could be one option to consider.

There are many good lenders to choose from. You may choose any lender that you want. The lenders listed below do home mortgages and participate in the Homepath program.

RETURN TO THE FORECLOSURE HOUSTON HOME PAGE

Privacy Policy