Pre Approval Letters

[Michael A.]

Curious to know what everyone’s approach to this is.

Do you get a pre approval letter specifically written for the property on which you’re submitting an offer?

Places are selling so quickly that I am often times not even able to get my offer in because my lender can’t generate specific pre approval letters for the offer price fast enough. No fault of theirs; the market is just moving unreasonably fast where I am right now.

What’s tour strategy?

[Wayne Brooks]

Originally posted by @Gagan P.:

I believe they can give a generic letter showing the amount you're prequalified for. What I'd recommend is a couple of different letters. Ie. if you're prequalified for $500k but offering $390k on a $400k property, you don't wanna show a $500k approval letter.

I've heard this argument often but it is short sighted. I've submitted many cash offers for around $100k with the buyer showing a POF of over $1M. Just because someone has plenty of cash doesn''t mean they will over pay for a property.

With financing it is even less applicable.  No informed seller wants someone tying up their property who appears that they could “barely” qualify for the loan....one little $50/mo discrepancy in their monthly income/debts disqualifies them.  As a seller you Always want a buyer who is over/comfortably qualified for the loan.