Pls Help

Is it okay when doing a FSBO to ask for a pre-approval once you've received the initial offer? Meaning that we have to counter but in negotiating we are willing to work with them for a specific $ if there is a pre-approval. Just not sure if we have the right to ask.

Thanks!!!!!

Re: Pls Help

Yes!
When we were looking for our home, the RE agents would always ask us for a copy of the preapproval when we made the initial offer.

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I had a real estate agent who wouldn't show me a house w/o a pre approval

and my husband is a mortgage brooker-

needless to say - I didn't use her

Re: Pls Help

Yes, this has been standard for a few years now. RE's and sellers can tell you that so many deals fall through because buyers have over extended themselves finacially.

We had a friend who was selling her split level house in East Norwich last year. EIGHTEEN deals fell through... yes EIGHTEEN because of buyers not being able to secure the mortgage. That is VERY aggravating for a seller and it delayed their eventual sale. Yes, she had a very reputable LI realtor but still

When we were selling and people called about the house we told them we were only showing to people who were preapproved. It took care of those who weren't serious.

Re: Pls Help

YES!!! Def. ask them for their pre approval letter. Tell them that their offer won't even be considered until they produce one.

Good luck!!!

Re: Pls Help

Thanks everyone! We are in the process of getting an attorney so the preapprovals will be submitted to him/her for review before we proceed to contract.

Re: Pls Help

I learned in Real estate school that this is always the first step. If the people arent prequalified for a mortgage - the first appt with the real estate agent should be to get the people pre qualified. If you dont do that - you and the people dont know what they can afford and you will be wasting valuable time for you and the client.

We are selling a house and we have gotten a few offers and people keep saying that they are serious and they are pre qualified but I havent seen any papers yet
Scott

Re: Pls Help

Thanks everyone - this is so helpful.

Can I ask another question?

We received an offer that is very low and so my DH countered but the intention is that once we can get to a point where we agree - if that happens - we will ask for a pre-approval before actually accepting. We will be very honest with them. Once we are at the agreed upon price we will tell them that we need a pre-approval before agreeing and that in the meanwhile we will continue to show the co-op and listen to all offers.

Is that okay? Any advice?

Re: Pls Help

Thats a good idea.

But keep in mind too, you may want to request a "prequalification letter".

A preapproval letter you can get pretty easy from any bank or broker without actually running any credit/personal info.

A prequal comes from a specific bank stating how much they can actually borrow from them based on downpayment, cash on hand, etc.

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