Getting pre-approved is a good idea when you’re buying Georgia foreclosed homes with financing options
Foreclosed properties in Georgia often sell for thousands of dollars less than comparable homes on the market. When you’re buying Georgia foreclosed homes, financing options are similar to buying homes on the traditional market. Knowing what options are available to you can make the home buying process a bit easier. Having financing in place prior to shopping can make the process of purchasing the home you want a lot faster.
When it comes to financing for a foreclosed Georgia home you are planning on buying, you should consider getting pre-approved. A pre-approval for a mortgage or real estate loan gives you better bargaining power when purchasing a distressed property. Lenders are anxious to get these properties off their books, so they don’t have to continue paying for the upkeep, maintenance, taxes and insurance on the properties. When lenders know that a potential buyer is pre-approved to buy a home, they are more likely to entertain the buyer’s offer.
Getting pre-approved for financing the purchase of a Georgia foreclosed home is a simple process. During the pre-approval process, you will need to submit data that proves your ability to repay a home loan. This usually includes your proof of income via paystubs and tax returns for the previous three years. It can take a couple of weeks or longer for a mortgage servicer to go over your documents and process your pre-approval. And your pre-approval will expire after a set amount of time. However, just because a lender gives you a pre-approval for a mortgage, you are not obligated to use that financing. Buyers should also remember that a pre-qualification and a pre-approval are not the same thing. The pre-qualification is simply a letter that states that you have the right ratio of income that is needed to make a home loan payment. A pre-approval means the lender has gone through all of your financials and is ready to loan you money when you find a home.
When buying Georgia foreclosed homes sold at auction, you may be required to pay cash for the purchase or for a percentage of the purchase price. This is a big reason why most average people can’t take advantage of an auction foreclosure sale. Nonetheless, you may qualify for a bridge loan, which is a loan that allows homeowners to borrow money to buy one home while they are actively trying to sell another.
When you are buying Georgia foreclosed homes, the financing options will be nearly the same as when purchasing a home on the regular market. RealtyNow is a great resource to help you find foreclosed homes in your area.