The first thing to do before buying a foreclosed property is to get a preapproval letter from a lender. This letter will outline how much money you can borrow and what's reasonable for you to spend. Many people shopping for homes assume they'll find a property and then work out the financing. But because foreclosed homes can be snatched up quickly, experts recommend getting your finances figured out before you start your search. That way, you can act faster and won't miss out on your perfect dream home.