Should I Get Preapproved Buying A Subject To??
Hey, im hoping somebody could possibley help me out..
Well ive been reading a lot of articles, how-to's and even attended a few seminars and what they have been reiterating time and time again is that before searching for a home, we should first get pre approved.
BUYING a home, i can understand why we should go get pre approved, but when buying subject to, i was wondering if it is just as important. If you think that i should get pre approved, what type of lender should i go too. Should i try a mortgage broker, bank, or hard money lender. What type of lender do you usually go to, to get smaller amounts of money, say 3 months of rent and a little extra money just incase the distressed seller needs a little money upfront.
And how does the whole process work out with the lender. For example. What do i have in collateral to secure the lenders loan, because the house that i just recieved has a mortgage under the sellers name. Would i be able to do a 2nd mortgage on the home that i just recieved subject to?
Im sorry for the questions..i know they are kinda confusing to understand. Im just a begineer and i think im confusing myself. lol. thanks
If you're going to gain control of a property using a "subject to" technique, pre-approval financing wouldn't serve much a purpose. The point of "subject to" is to gain control of a property subject to the existing financing. If you get a loan on the house and purchase it from the seller, you are doing an old fashioned home purchase
-Chris
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