Home Buying in Seattle>Question Details

Juicedformov…, Home Buyer in Seattle, WA

Is it common practice for home sellers to request a buyer be pre-qualified a second time by their own mortgage provider?

Asked by Juicedformovin, Seattle, WA Thu May 16, 2013

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Yes, it happens on occasion. It's not common. The buyer should (of course) agree to the review of their qualifications by the seller's lender. Refusing to cooperate may mean the seller will reject your offer. Besides, what have you got to hide?

Usually this issue comes up in an over-heated real estate market. Sellers are reluctant to trust the buyers lender. I don't blame the seller. In the past, some mortgage brokers wrote worthless approval letters, and buyers were later deemed to be not qualified. It's the seller that suffers, losing a sale and other more qualified buyers that had presented purchase offers.
0 votes Thank Flag Link Thu May 16, 2013
As others have commented, I only see this in the Seattle area with New Construction Builder Homes, and with REO, or Bank-Owned Homes. Give me more specifics on your situation, and I will be happy to research your particular situation for you. Mary
0 votes Thank Flag Link Thu May 16, 2013
As others have said, not common, but if it does happen, and wasn't a part of the agent only remarks it might mean that the listing agent doesn't trust the buyer's lender or the buyer's agent.
0 votes Thank Flag Link Thu May 16, 2013
It is common for a seller of new construction or an REO property to request (often demand) a buyer is pre-approved by their "preferred" lender, BUT it is not legal for the seller to require you to borrow from their mortgage provider.

The seller wants to ascertain that a potential buyer's financial worth has been vetted by a trusted source; there are unscrupulous lenders who might "pre-approve" a buyer without truly qualifying the borrow's ability to take out a loan for the amount of the purchase. It is "insurance" the buyer can close on a loan for the amount agreed upon in the purchase and sale agreement.

You really should enlist the help of an agent who will help you navigate your home purchase. It is likely the largest purchase you will make in your life and you should hire a professional to facilitate the process. (You likely wouldn't represent yourself in a court room, but rather hire a professional, an attorney, to represent you.) There is no charge to a buyer in Washington State to hire representation, a buyer's agent's commission is paid by the seller and is negotiated at the time of the listing, not at the time of purchase.. It is important you have your own professional representative that advocates for your success and not for the benefit of the home seller.

Please don't hesitate to contact me directly if you have more questions (answers, of course, are free of charge :-) 206-501-7837 or email me phoebe@SheSellsSeattle.com and visit my website to view all Seattle area listings: http://www.SheSellsSeattle.com

I am happy to help if you need me!

Phoebe Underwood
0 votes Thank Flag Link Thu May 16, 2013
It is not common, but as a seller, you have the right to ask your listing agent to request a lender's pre-approval letter from buyer. But it will not be reasonable to request a pre-approval letter from a particular lender. The buyers have tights to choose which lender they want to use.

For more tips on selling your home, go to
0 votes Thank Flag Link Thu May 16, 2013
not common at all ...might be heppening with the sellers marketplace seattle is in right now
0 votes Thank Flag Link Thu May 16, 2013
More common amongst bank owned properties, but not typical of private owners/sellers.
0 votes Thank Flag Link Thu May 16, 2013
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