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Old 10-22-2007, 06:48 AM
 
962 posts, read 3,497,583 times
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We are planning to make an offer on a new construction home soon. Our agent said we should get a pre-approval letter and attach it to the offer. She says this will make us cash buyers and will help our offer.

I'm curious...what if our pre-approval letter has a higher amount on it? I'm worried the builder will think "they are qualified for X amount, why would we sell it to them for less?". Should we get the pre-approval letter to only list the max amount we want to pay?
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Old 10-22-2007, 06:52 AM
 
582 posts, read 1,847,219 times
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Call the banker and get them to give you a pre-approval letter that is the amount of your offer, or you will definitely shoot yourself in the foot. The woman buying our house did that, sent the letter in that had the most she could afford. We didn't take her initial offer because it was too low but she came back at her max and we accepted because it was just enough for us to cut our losses and get out.
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Old 10-22-2007, 07:04 AM
 
Location: Virginia Beach, VA
2,124 posts, read 7,950,125 times
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Sara is correct. Once you know what your offer is, have the lender issue a new letter with that amount of money. That is all they need to know, that you are approved that offer. If your offer is rejected or countered, and you choose to stay in the game, you can have the lender issue a new letter for the new higher amount.

Shelly
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Old 10-22-2007, 07:06 AM
 
Location: East Tennessee
3,926 posts, read 10,309,886 times
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IMO, pre-approval letters are worthless in this market. You can get one from a 1000 different websites instantly. If you're going that route, definitely get the letter for approximately what you intend to offer.

You might also get better rates using the builder's financing if it's offered. At least, get more than one GFE.

What's more valuable to me as the seller is that you are prequalified and now you are shopping for a house.
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Old 10-22-2007, 07:11 AM
 
Location: Nine Mile Falls/Spokane, WA
993 posts, read 4,340,882 times
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You can also have your lender change the approval letter to say "Mr & Mrs so and so are qualified to purchase the property at xxx Main St. based on the terms of the purchase & sale agreement" instead of putting an amount in.
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Old 10-22-2007, 09:44 AM
 
Location: East Tennessee
3,926 posts, read 10,309,886 times
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Default duh..Sorry!

I inverted pre-qualified versus pre-approved. Pre-qualification leads to pre-approval. Nonetheless, neither is a guarantee the lender will approve the loan. Sorry about that!

Quote:
Originally Posted by TampaKaren View Post
IMO, pre-approval letters are worthless in this market. You can get one from a 1000 different websites instantly. If you're going that route, definitely get the letter for approximately what you intend to offer.

You might also get better rates using the builder's financing if it's offered. At least, get more than one GFE.

What's more valuable to me as the seller is that you are prequalified and now you are shopping for a house.
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Old 10-22-2007, 10:08 AM
 
Location: California
66,459 posts, read 16,367,915 times
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It is a very good idea to attach a pre-qual letter,I always attach one for my buyers,this will help the sellers to determine if they would accept you or not.
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Old 10-22-2007, 11:33 AM
 
Location: Cary, NC
2,408 posts, read 9,832,627 times
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Have your lender reissue the pre-approval letter in the amount of your offer.
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Old 10-22-2007, 06:40 PM
 
Location: Columbia, SC
9,071 posts, read 18,070,923 times
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I either ask the lender not to include the price or if they do I take a sharpie and mark through it.
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Old 10-22-2007, 07:22 PM
 
Location: Danbury CT covering all of Fairfield County
2,247 posts, read 5,974,645 times
Reputation: 1043
I ask the lender not to include the price and say 'buyer are qualified to purchase on the house at 123 Fake Street, Springfield.'
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