Ever wonder how you get a mortgage on a home in foreclosure or a short sale?
Actually, just like you would on any other property. The fact that the property has been foreclosed upon or is being offered as a short sale has no bearing on the purchase money mortgage that you apply for to purchase the property. There are however, a few items that you should keep in mind:
1) If the property is in a state of disrepair it may not be eligible for conventional financing so a rehabilitation or construction loan may be in order.
2) The time frames of the negotiations and/or closing with the seller and/or bank can be protracted so keep this in mind when speaking to your mortgage planner about your interest rate lock and approval.
3) If the property is located in a “distressed” or “declining” market you may be required to make a larger down-payment.
And as always get pre-approved for financing first and if you already have but has been more than 30 days check with your mortgage planner and ask the he or she update your pre-approval.