Interesting that even agents do not agree on what to do. Obviously it does not matter in the long run or there would be a clear cut answer. I say as long as you can explain it, meaning the offer is in person, you will have strength. Remember the pre-approval letter can be without any investigation, even credit check or it can be with credit score, balances owed, asset declaration, employment and income verification. You have no idea of the quality of the letter. Personally I would rather see a higher ability to buy than one right on the nose. Think about it. Do you want to telegraph to the seller that this is your final offer? Show me a $300,000 letter and an offer for $260,000. Now I can see you may be conservative and sensible in a weak economy. Anything can be explained. I hope you are using an agent to make the offer. Good luck. Keep us posted.

I think it's okay to go ahead with the number you are approved for, 260K means that thats this is the maxm. loan loan amount and not the property asking price. Where as you are supposed to be putting in 20% as down payment aswell. So even if you want to make an offer for a lesser amount the bank approval showing more amount does not go against you and you can make the offer what you want to make. Keep in mid that the offer need to be logical to win the sale. Rather having an approval forabigger value makes you a more serious and potential buyer.. good luck

Sunil Gupta, Sales Associate, Century 21
sgproperties.nj@gmail.com

Leave the dollar amount off the letter and just put the address. Are you working with a Realtor? Will you present your offer using a P&S agreement? Talk up your financing if it is solid, can you close quickly....remember your financing contigency. Are you going to present the offer in person? Is your bank local and are they fine with the seller contacting them? Best of luck!

The only problem with getting a pre-approval letter without an amount that you are pre approved for may be rejected by the seller or their agent. Having your mortgage broker type it to the offer amount would be more recommended, however it may cause more work for them, so ask them up front if they are willing to do that for you. When you make an offer, dont base it on what teh asking price is, base it on what todays market value is. Anyone can throw an asking price on property, back yours up with facts and comparables to let the seller know why you offered what you did, Good luck in your offer.

Highest Rated

Hi Marlo,

You ask, "I am preapproved for 260K, but should I have the bank write the preapproval for like 220K since I have to submit thatw/ the offer."

Normally you would get this advice from your own buyer agent, a Realtor who is working just for you. So I am suggesting you first find a Realtor to help you--it's FREE

And then have the banker/mortgage originator write a preapproval letter for the amount which matches the amount you are offering. This may require your having the banker write several letters, but they get paid to make loans and won't mind helping you in your negotiating.

Remember that the house will have to appraise for the full amount of the offer--and that should be written into the offer--so keep that in mind. Also you may want to include other "contingencies" which will give you certain other rights without weakening your offer.

Good Luck

Dane Hahn
NH Broker
Betty LaBranche Realty
603-566-5460

I don't think so. When you make the offer, make it clear why the offer is what it is. "These sales on similar houses tell me the value is XXX." The 2008 sales to assessment ratio is xx%. My offer is based on that history. Most bank approvals are just estimates. A seller wants to know the credit score, the down payment, the loan type in order to make a guess at your success in closing. Also, are you approved for a 260 loan or a purchase of up to 260?

You can request that the bank does NOT include a dollar figure. The letter can simply state that you are preapproved for the purchase of the property located at "123 Main Street."