How to Get a Loan for Buying a Foreclosure Home

Before applying for any kind of loan to purchase a foreclosed home for sale, take the time to research and learn more about the options available.

Fixed versus adjustable rate mortgages Short versus long-term mortgages

Always remember that every time one applies for a loan, there is no guarantee that the application would be approved. One would also have to adhere to the same ขายที่ดิน ราคาถูก requirements and pay another set ofclosing fees.

Construction Loans as "Story" Loans

Frequently advised, homebuyers should take good care of their credit standing for better chances of getting a loan application approved. While a high FICO score certainly helps, it is not the only determining factors to take into account.

Construction loans are also referred to as "story" loans because lenders usually want to know what plans are or what intention if the loan is approved. Construction loans are also, what one would have to apply for if they wish to remodel the foreclosed home. How much they would be able to borrow, and at what terms and conditions should be met. It is important to make sure the story is legitimate, as lenders would definitely have it checked out.

The Truth About Brokers

Many homebuyers avoid working with a broker in fear of paying more than they should when they have found the ideal home to purchase. In reality, however, one would have better chance of getting the loan application approved when working with a broker. More importantly, doing so will not cost any extra expenses. Brokers earn by charging the same retail priced for loans while enjoying wholesale rates from bankers.

Debt-to-Income Ratio

Banks typically prefer to extend loans to applicants whose total debt (including the money you have borrowed with a new loan) would not be greater than 36 to 45% of the gross monthly income. There are, of course, exemptions to the rule and these are typically those with exceptionally high credit scores or those who have been personally guaranteed by individuals of very good financial standing.

Builder's Package

Processing time for construction loans is longer than usual because of the builder's package, which typically include the following:

References of builder or contractor Cost estimate Materials list Approximate timetable Construction contract

In some cases, the lender may have several questions to ask about the builder's package before it is approved. Questions may include being asked to modify certain items or figures. In most cases, one will have an easier time getting the builder's package approved if working with a pre-approved builder or contractor. Read the fine print.

Speaking of construction contracts, make sure to read the fine print before affixing a signature on its pages. An ideal construction contract typically includes the following information:

A complete and specific list of responsibilities of the homeowner and contractor Essential estimate dates for the construction or remodeling Payment schedule and timetable Conditions for post-contract amendments and termination