Home Buying in 60120>Question Details

Drew Mccurdy, Home Buyer in East End, Portland, ME

I have a pre approval letter and i'm being told i have to submit that pre approval letter with any offers is that right?

Asked by Drew Mccurdy, East End, Portland, ME Tue May 13, 2014

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I always ask if a buyer has a pre-approval letter. When the seller is my client, I am working in their best interest to provide them with one from the potential buyer. If there is no pre-approval how are you to know that the purchaser can really afford the home?

If I have a buyer that is a customer, I want to know if they are truly serious about purchasing a home. We don't get paid until a home closes, so why waste precious time and gas with buyers who are really just lookers.
0 votes Thank Flag Link Mon Sep 15, 2014
It's always a good idea to be in a position of strength and showing that you did your due diligence by becoming pre-approved is always a good thing but it's just a start. Your offer, and terms are an important part of the equation.
1 vote Thank Flag Link Mon Sep 15, 2014
Not all sellers may request, but is a great idea to submit it with any offer. If the seller is requesting it than it is a must, otherwise your offer may not even be looked at.
0 votes Thank Flag Link Mon Sep 15, 2014
Hello Drew,

You are correct. Sellers don't want to consider offers unless the buyer is somewhat qualified.

I say "somewhat" since not all mortgage pre-approval letters hold water, however, they give the sellers peace-of-mind that they are working with a serious buyer who probably has the means to purchase the property.

Sincerely,
John Meyers, Meyers Realty - Chicago
1 vote Thank Flag Link Mon Sep 15, 2014
Well, especially if your agent says there may be other offers, it is a good idea. Out here in California, I always check with the seller's agent to see if there are other offers coming in, and then you are in the best position to compete if you have a strong downpayment and pre-approval letter. Especially if you are going to offer less than asking price, all the more reason to show how serious you are.
0 votes Thank Flag Link Wed Jul 9, 2014
That is completely normal for seller's agent to ask to see copy of pre-approval letter or proof of funds with any offer. If you submit a offer without a pre-approval letter that just shows a red flag.
0 votes Thank Flag Link Wed Jul 9, 2014
You do NOT need to, but it certainly is a good idea. You do not need to provide proof of what you are "able" to purchase, only that you qualify for the amount of your "bid"
0 votes Thank Flag Link Mon Jun 2, 2014
Yes, it is an important part of the equation because it is telling the sellers that you've done some homework and a professional mortgage person is saying your credit is good, etc. It is a necessary first step.
0 votes Thank Flag Link Fri May 16, 2014
When submitting an offer, It is quite typical for sellers to request documentation that a buyer is qualified to purchase a home (proof of funds for cash buyers and preapproval for buyers getting a mortgage). I have seen some sellers that require a potential buyer talk to their PREFERRED lender to get another preapproval.
a lot of deals fall apart due to finance issues, sellers are trying to avoid wasting their time with an unqualified buyer.
your agent should have explained this to you....
0 votes Thank Flag Link Fri May 16, 2014
Hi Drew,

Every purchase contract you are writing has to be qualified by using your pre-approval. Without it, there is no way for the buyer's agent to determine if you will be able to close or not. Your pre-approval should be issued within the last 90 days and preferably from a Direct Lender with No condition except an appraisal.

Some sellers are picky about the lender and might also require a Desktop Underwriting which basically means your lender has gone through your employment, asset and other verification and is ready to fund your loan as soon as they get the appraisal.
0 votes Thank Flag Link Wed May 14, 2014
Hi Drew,

Yes, the sellers will want to see a copy of your pre-approval letter. They may even ask to see your asset documentation to prove that you have sufficient funds to close.

Best wishes,

Elva A. Wormley
Mortgage Consultant
Cell: (408) 569-3512
Office: (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981
0 votes Thank Flag Link Tue May 13, 2014
Yes, that's right. When you want to buy a home the best place to start is to hire an EXCLUSIVE Buyer Agent, not just a Buyer's Agent. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position. I can refer you to an EBA in your area, if you like.

I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home and get a mortgage without getting ripped off. Follow the link below.

Best of luck!

Alysse Musgrave
214-734-3863
Alysse@HelpUBuyAmerica.com
http://www.HelpUBuyAmerica.com
0 votes Thank Flag Link Tue May 13, 2014
Sellers may request that you provide a pre approval letter that let's them know you are serious and have the funds to purchase the home.
0 votes Thank Flag Link Tue May 13, 2014
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