YES! It is of the utmost importance to be pre-qualified or better yet be pre-approved by a financial institution prior to making an offer on a REO property. In most cases the seller will not even respond to an offer without verification of the buyer's ability to procure financing.
There are several financing programs available for the purchase of "as is" properties and we can provide you with the information on these programs. Most sellers will not hold a second mortgage or allow preoccupancy, but in some cases the seller will offer special financing incentives. Furthermore, some sellers may require that the buyer be pre-qualified by one of the seller's loan representatives to give them the assurance that financing will not be an issue... For those buyers making cash offers, the buyer must be prepared and willing to provide the seller with written verification of funds available to close. Also, some sellers may require cash buyers to close within 10-14 days
after contract acceptance.
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Do I need to be Pre-Qualified to Buy an REO?
