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Old 05-05-2011, 03:06 PM
 
Location: Phillips Ranch
7 posts, read 23,141 times
Reputation: 13

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Hello Everyone,

My wife and I are about to make our move in buying our first home (most likely a short sale). We are unsure if itís wise to get my pre-approval letter before placing offer(s), since the pre-approval letter may expire long before the outcome of the short sale.

Also, is it an acceptable practice to place offers on multiple short sales? On one hand we feel we may be wasting sellerís/agentís time if we ended up backing out, but on the other hand if we ride out the short sale process one at a time the entire house-hunting experience may become undesirably long.

Please share with us your thoughts and suggestions. Thank you.
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Old 05-05-2011, 04:14 PM
 
Location: My House
29,294 posts, read 24,717,371 times
Reputation: 22721
Why a short sale for your first home purchase? Glutton for punishment?
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Old 05-06-2011, 01:32 PM
 
Location: Phillips Ranch
7 posts, read 23,141 times
Reputation: 13
Heh yeah, maybe we'll regret it later. At first we wanted to avoid short sales, but after monitoring Redfin it appeared that majority of the listings are short sales. Also, we are not in a hurry to move; but to anticipate the infamous long short sale process we've started looking.

So my question is when is a good time to get the pre-approval letter... before I place any offers (which is now), or at a certain stage of the short sale process?
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Old 05-06-2011, 01:44 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,239,495 times
Reputation: 2172
Quote:
Originally Posted by cavench View Post
...So my question is when is a good time to get the pre-approval letter... before I place any offers (which is now), or at a certain stage of the short sale process?
Many sellers will want a pre-approval letter included with your offer.
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Old 05-06-2011, 02:03 PM
 
Location: Lakewood Ranch, FL
5,017 posts, read 7,250,646 times
Reputation: 5769
Yes, you'll want to get pre-approved before you make an offer for two reasons. First, as already mentioned, most sellers will want some indication that you are really able to qualify for a loan. Second, you need to talk with a lender to understand how much of a loan you'll qualify for and, therefore, how much you can afford to spend. There are additional costs to buying a home and your lender and agent can help you there, too. It's not just how much down and how much a month after that.
You'll also want to talk with your lender about staying qualified. Getting a pre-qual now will help you get into a contract but if you don't understand the things that can ruin that qualification, it is very easy to wait for the bank approval of the short sale only to find that you can no longer get a loan.
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