As a seller, can I insist on seeing a prequalification letter before I counter their offer or before I sign the final offer?

Asked by Concernedseller, 94533 Tue Apr 12, 2011

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Kawain Payne’s answer
Kawain Payne, Agent, Seal Beach, CA
Thu Oct 11, 2012
By all means!!!

Any serious buyer who wants to buy your home will have no prblem producing documentation to verify they are credit worthy enough to buy your home.

Much Success to you!

Kawain Payne, Realtor®
1 vote
seeking an a…, , Orlando, FL
Mon Jan 23, 2017
I am looking for a home I am prequalitied and have the letter to prove it. I have not found a home and I have not made an offer. The agent insisted the letter needs to be to fax it to the other agent before I even walk into the house. I know how much I want to spend but I was given 2 letters. One very high and the other I asked for to be very low. I feel if I show the high letter I will not have leverage since the seller will say she can afford it. According to the Fair Trade Act a agent can not discriminate against me because I refuse to show a letter before I walk into a home. Also my mortgage agent who is not the realtors told me to ask for the disclosure before making an offer. If the roof leaked there may be a possibility of mold. If they had wood destroying insects that could affect the structure. Never Never let the realtor distract you from looking at the property. I have seen discoloration on the ceiling meaning there was a leak and a leak could mean mold. I check the AC/HU and if I see it is freshly painted I touch the area it is sitting on to see if it is wet. Wet means leaking Dirty vents means they they never changed the filter. Mold is mold and to remove it properly it will cost you 14,000 to 24,000. Black Algee in a pool is also a problem that is a 10,000 and up cost to take the diamond bright off and clean the gunite and re diamond bright. Never Never use the realtors man they charge you extra and they realtors get a kick back. Also shop around. I have seen IKEA kitchens which are cheap and they are charging you for a level 10 kitchen. Go shopping. I am a stagger and I know the tricks. Most Realtors hate me because I do the hiding of home problems for them and they will say I didn't know.
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Wed Apr 13, 2011
Of course, that is one of the first steps we take in qualifying a buyer when we show properties so you absolutely have a right a request a pre-approval letter before accepting an offer...a pre-approval that's been seen by underwriting is even better. if you need further assistance, please dont hesitate to call or email me. Good luck.
0 votes
Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Tue Apr 12, 2011

If your buyers need to speak with a lender who can turn around their approval quickly, I would be happy to assist.

Can do, will do,

Rob Spinosa
0 votes
Dianne Langs…, Agent, Fairfield, CA
Tue Apr 12, 2011
Yes, you need to know that the buyer has at least spoken to someone about a loan if they plan to buy with financing. Additionally, you need to know the kind of financing to be certain there are no mandantory cost for you. Any competent agent is not going to show houses without knowing that the buyer can obtain financing. That is fundamental to buyer representation. Please insist on a letter. All the best to you on your sale.
0 votes
Christopher…, Agent, Tarrytown, NY
Tue Apr 12, 2011
Hi, You absolutely can and should. I never submit offers to my sellers without a pre approval letter because we are dealing with a big purchase and alot of emotions. I don't want my seller thinking they have a qualified buyer and then finding out they weren't qualified. Any buyer that is serious will move forward with the pre approval process. I've seen many deals fall apart because the buyer didn't have their pre approval in time and another buyer that did got the home.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
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0 votes
John Arendsen, Agent, Leucadia, CA
Tue Apr 12, 2011
I have to chime in with everyone else. Can't one up all that extremely professional advice. I even learned something. Isn't it great to have such a terrific venue to refer to.
0 votes
John Souerbry, Agent, Fairfield, CA
Tue Apr 12, 2011
I agree with most of the previous answers. A simple pre-qual letter that doesn't contain the actual terms of the offer you have before you isn't worth anything. It's OK to require a pre-approval letter with an original offer. To be on the safe side, I ask my buyers to get pre-approval letters from at least 2 lenders and we submit both with the offer.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Apr 12, 2011
YES, your listing agent should be insisting on this as a requirement . Much is governed by lender approval letter

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
CJ Brasiel, Agent, San Jose, CA
Tue Apr 12, 2011

It is fairly standard practice in this lending environment to submit a pre-approval letter with credit scores and closing cost/down payment confirmed and/or proof of funds to close with all purchase offers. If this is your preference, the listing agent should include any requirements in the MLS notes or request when an offer is made.

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0 votes
Laura Coffey, Agent, Santa Clarita, CA
Tue Apr 12, 2011
I wouldn't expect you to do it any other way. I usually won't even present an offer to my clients (sellers) if the buyer doesn't submit a pre-qualification letter and proof of funds regarding their deposit amount. Even with that in hand I call the buyer's lender and qualify him/her as well to see if they know what they are doing and how much information they have already gathered from the buyers.
Lending is not easy any more and the more your home is off the market , the more buyers you are loosing out on if your current buyers can't fit the bill. Your agent should have explained that they make sure all buyers are qualified before you even listed with them.
Good Luck.
0 votes
BayAreaHomeR…, Agent, Vallejo, CA
Tue Apr 12, 2011
With all my offers I send out for my buyers, I always include :

Pre-Approval Letter
Copy of DU Findings (This a system run by Fannie Mae, saying they will buy the loan)
Copy of Credit Report
Copy of Proof of Funds ( to include down payment & closing cost)
Access to my buyers lender for the agent to call and check status of the loan

The bottom line is to convince you ( the seller) that the buyer is 100% capable of purchasing your home.

P.S. I'm in Fairfield too, let me know if I can help you.


Sameer Punjani
Broker / Owner
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Apr 12, 2011
Yes, prequalification/approval letters should accompany any offers...
0 votes
Steven Ornel…, Agent, Fremont, CA
Tue Apr 12, 2011

I absolutely agree with what Shanna has stated. In addition, there's even something BETTER than a Pre-Approval Letter that really provides evidence that the Buyer is qualified to buy your home called a “DU”, which you can read about here:…

Best, Steve
0 votes
Michael Mull…, Mortgage Broker Or Lender, Bend, OR
Tue Apr 12, 2011
From my perspective of working with buyers who thought they were "prequalified" only to find out that the other lender had made a mistake I highly recommend a full pre-approval.

There's an important distinction I'd like to make - about 90% or more of the "prequalificaion" letters handed from the loan officer to the buyer's agent and then delivered to the listing agent are all loan officer opinion letters. Most have never actually been reviewed by an Underwriter.

If it were me I'd demand a fully Underwritten pre-approval letter. Is it an extra hurdle to make the buyers jump through? Sure it is. Does it increase your odds of having a contract with a qualified buyer and not wasting your time? Yep.

Cost should not be a factor - the ONLY expense involved is a credit report which runs about $20 or less. If the lender wants more money upfront maybe call someone else.

I have some clients ask "well, how do I know if an Underwriter approved the loan?" There will always be a written communication from the Underwriter to the loan officer communicating the approval. If the loan officer tells you they can't produce the approval I'd be very concerned.

That's my two cents.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Tue Apr 12, 2011
Yes, you can. Have your Listing Agent contact the Buyers Agent to get that. If you decide not to accept this offer, have your Listing Agent make a pre-qualification/pre-approval letter a requirement to be submitted with any future offers. Your agent should also make proof of funds a requirement. They can put this in the Agent Remarks section of the MLS. You don't want to accept an offer without knowing if the buyer can actually purchase your home.

If you have any other questions, please feel free to contact me.

Shanna Rogers
SR Realty
(951) 240-2205
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