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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Should a seller SEE the buyer's pre approval letter?
Or is it something the agents work out? And should this be submitted before or after any offer is considered/ accepted?
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Posted 4/17/12 3:31 PM  |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Should a seller SEE the buyer's pre approval letter?
Mine saw ours..
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| Posted 4/17/12 3:33 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Should a seller SEE the buyer's pre approval letter?
Posted by Blu-ize
Mine saw ours..
Your agent?? or do you mean the seller you bought from? and did they see it BEFORE agreeing on an offer? AND did they actually SEE it, like letter in hands???
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| Posted 4/17/12 3:40 PM |
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Re: Should a seller SEE the buyer's pre approval letter?
We had our mortgage person give us a letter with the amount we were bidding not the amount we were approved for.
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| Posted 4/17/12 3:59 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Should a seller SEE the buyer's pre approval letter?
Posted by architectnycity
We had our mortgage person give us a letter with the amount we were bidding not the amount we were approved for.
Ok and was this WITH your offer or after negotiating and offer accepted.
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| Posted 4/17/12 4:00 PM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: Should a seller SEE the buyer's pre approval letter?
I think we sent ours in with our bid. Whether the sellers saw it or not, I have no idea. But to prevent the sellers from thinking we were approved for way more than we wanted to spend, I had the pre-approval amount set at a lower amount.
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| Posted 4/17/12 4:01 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Should a seller SEE the buyer's pre approval letter?
I don't think seller needs to actually see it. As long as listing agent has on file.
Depending on the offer, a lot of times things can be negotiated and then the paperwork submitted after you agree on terms/price but before you officially accept.
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| Posted 4/17/12 4:30 PM |
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Re: Should a seller SEE the buyer's pre approval letter?
When I work with a buyer, I always have all the paperwork ready to go when I make an offer on a buyer's behalf. I make the offer verbally first (either over the phone or in person) -- directly to the seller (with the listing agent present, of course) when possible. And then I either send or hand the written offer with the preapproval letter and other relevant documents to the listing agent.
When I am the listing agent, I wouldn't let my seller accept an offer without having received a preapproval in writing with the offer. But I don't usually give the letter to the seller -- I would if they asked, but the sellers generally don't. I will tell them "buyer is preapproved by x bank or y credit union." We usually discuss the strength of the offer, and sometimes who the lender is will factor in. If I have questions about the preapproval, I follow up on it myself. As long as the seller can rest assured that the buyer can get financing, it shouldn't be an issue. But there is usually no personal confidential info (other than name and address of the buyer) on the letter, so I don't see why it would be an issue to let the seller see it).
Once there is verbal agreement on the terms (and I've seen and reviewed the written offer and preapproval/financing info), I just send everything on to the seller's attorney so they can start working on the contract.
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| Posted 4/17/12 4:47 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Should a seller SEE the buyer's pre approval letter?
Posted by Century 21 Dallow - Christine Braun
When I work with a buyer, I always have all the paperwork ready to go when I make an offer on a buyer's behalf. I make the offer verbally first (either over the phone or in person) -- directly to the seller (with the listing agent present, of course) when possible. And then I either send or hand the written offer with the preapproval letter and other relevant documents to the listing agent.
When I am the listing agent, I wouldn't let my seller accept an offer without having received a preapproval in writing with the offer. But I don't usually give the letter to the seller -- I would if they asked, but the sellers generally don't. I will tell them "buyer is preapproved by x bank or y credit union." We usually discuss the strength of the offer, and sometimes who the lender is will factor in. If I have questions about the preapproval, I follow up on it myself. As long as the seller can rest assured that the buyer can get financing, it shouldn't be an issue. But there is usually no personal confidential info (other than name and address of the buyer) on the letter, so I don't see why it would be an issue to let the seller see it).
Once there is verbal agreement on the terms (and I've seen and reviewed the written offer and preapproval/financing info), I just send everything on to the seller's attorney so they can start working on the contract.
Ok this is the info I needed exactly. I needed to understand the sequence. Do preapproval letters generally state Credit Scores?
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| Posted 4/17/12 5:01 PM |
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Re: Should a seller SEE the buyer's pre approval letter?
Posted by Serendipity
Ok this is the info I needed exactly. I needed to understand the sequence. Do preapproval letters generally state Credit Scores?
No - the lenders/banks look at the credit, of course, as a factor, before issuing a preapproval (or they should!), but that info is not on the letter.
A good preapproval letter has:
1. The buyer's name and address,
2. The purchase price they are approved for, and the mortgage amount they are approved for,
3. The taxes being assumed (if the property taxes on the house are $12K and the preapproval assumes taxes of $9K, it obviously is going to affect what the buyer can afford/how much they can borrow), and
4. The name and contact info for the loan officer (or some point of contact) at the lender.
Sometimes the preapproval will specify the property, by address, that the buyer is making an offer on, but most of the time, they are more general. (Some larger banks, like Chase, are saying the buyer needs to provide a specific property address before they will give a preapproval).
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| Posted 4/17/12 6:18 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Should a seller SEE the buyer's pre approval letter?
I have seen pre-approvals with credit scores
Continental home loans I believe puts them on there
I would never accept an offer with out reviewing the pre-approval letter and sometimes calling the loan officer if I am unfamilar with the company
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| Posted 4/18/12 12:02 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Should a seller SEE the buyer's pre approval letter?
Posted by Beth
I have seen pre-approvals with credit scores
Continental home loans I believe puts them on there
I would never accept an offer with out reviewing the pre-approval letter and sometimes calling the loan officer if I am unfamilar with the company
Would you accept an offer without a credit score or Debt to income ratio?
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| Posted 4/18/12 7:31 PM |
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Re: Should a seller SEE the buyer's pre approval letter?
Posted by Serendipity
Would you accept an offer without a credit score or Debt to income ratio?
Yes - as long as it is from a reputable lender. If I have questions about the validity of the preapproval or the buyer's financial qualifications, I look into it further. Most of the letters don't have that information, as it is personal, sensitive information.
I have a house under contract now, and my buyers are using Continental as a lender, but their preapproval didn't specifiy credit scores or debt-to-income. I've nver seen that information on a preapproval. The point of a preapproval is that the bank has verified that the person can get a mortgage from that bank. Every bank has different criteria, and there's no one factor that is determinative. So even if the seller got to see credit scores and debt-to-income ratios, they wouldn't really have the whole picture as to whether that person can get a mortgage from the particular lender they want to use.
But some lenders don't do any due diligence before issuing preapprovals, so they aren't worth the paper they are written on. But, to that point, most agents have a preferred lender that they do a lot of business with. Your listing agent can always require that the buyers get preapproved by her lender (although the buyers can then ultimately use their original choice or whomever they want for their actual mortgage). Even when I am working with a buyer, not the seller - if I think the buyer seems financially shaky, I will often ask them to speak to a mortgage contact I deal with a lot (even if they have a preapproval) to make sure when push comes to shove, they can get a loan. And then, if it turns out they are ok with my recommended lender, if their original choice of lender doesn't come through, they have a back up. So it's a win-win!
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| Posted 4/18/12 9:05 PM |
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