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Old 03-04-2011, 06:50 AM
 
72 posts, read 259,511 times
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"A pre-qual from Wells Fargo must accompany any financed offer or a proof of funds if cash."

What's up with this? I have no intention of using WF, and have a pre-approval from another bank. Is this safe to ignore for an offer on this property?
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Old 03-04-2011, 07:07 AM
 
Location: Tempe, Arizona
4,511 posts, read 11,555,896 times
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You can still use your bank for handling the loan. Many bank foreclosure sellers want pre-quals from their in-house lenders to verify the buyer's ability to get a loan. It's not safe to ignore if you want them to consider your offer.
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Old 03-04-2011, 07:54 AM
 
72 posts, read 259,511 times
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Quote:
Originally Posted by rjrcm View Post
You can still use your bank for handling the loan. Many bank foreclosure sellers want pre-quals from their in-house lenders to verify the buyer's ability to get a loan. It's not safe to ignore if you want them to consider your offer.
I was wondering if this "requirement" was the same as a range pricing listing. Sure they want you to submit an offer within this range, but 99% of the sold listings end up selling below the lower end of the range.

I suspect this is just a scheme to drum up more business for WF.
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Old 03-04-2011, 07:57 AM
 
Location: Martinsville, NJ
6,159 posts, read 10,893,123 times
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Quote:
Originally Posted by BedfordResident1 View Post
I was wondering if this "requirement" was the same as a range pricing listing. Sure they want you to submit an offer within this range, but 99% of the sold listings end up selling below the lower end of the range.

I suspect this is just a scheme to drum up more business for WF.
That's almost certainly part of the reason. But more important is that they want to be sure you actually ARE qualified to make the purchase. If they put you through their process, thay are as assured as they can be. They cannot make it a requirement that you borrow the money from them, though it's possible they'll make a sales pitch to you.
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Old 03-04-2011, 08:44 AM
 
Location: Pomona
1,955 posts, read 9,199,252 times
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Since I did purchase a foreclosure a year and a half ago ...

Quote:
Originally Posted by Bill Keegan View Post
But more important is that they want to be sure you actually ARE qualified to make the purchase. If they put you through their process, thay are as assured as they can be.
+1. Some mortgage brokers still don't do the actual verifications when prequalifying a client, so when the actual loan proceeds, it falls apart in mid-transaction.

Quote:
They cannot make it a requirement that you borrow the money from them, though it's possible they'll make a sales pitch to you.
+2. In my case, the mandatory lender ended up being lower than the rate I got from my lender, so they got the business.
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Old 03-04-2011, 09:45 AM
 
Location: Tempe, Arizona
4,511 posts, read 11,555,896 times
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Quote:
Originally Posted by BedfordResident1 View Post
...I suspect this is just a scheme to drum up more business for WF.
While they do also want to get your loan business, it is not unique to WF. You will see this requirement with most of the banks. As said, they can't force you to get a loan from their preferred lending service as a condition of the sale.
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