Mortgage pre-qualification letter needed (sales, real estate, credit)

[longislander2]

The buyers of my home are taking out a hefty mortgage and my real estate agent has implied that they may be "stretching" financially to make the purchase. Given those circumstances, I have asked the buyers to supply a mortgage pre-approval letter from a reputable lender as part of the sales contract. I realize the pre-approval is not the same as a mortgage commitment, but my understanding is that it is reasonable and customary on Long Island and elsewhere for sellers to ask for such a document. My attorney is telling me not to bother with it. I believe he is wrong. Any thoughts on this would be appreciated. Thanks.

[MrBitterness]

I'd still let potential buyers see your home. I got mine when after 8 months the seller's original buyers just couldn't get an approval.

[Elke Mariotti]

Originally Posted by longislander2

The buyers of my home are taking out a hefty mortgage and my real estate agent has implied that they may be "stretching" financially to make the purchase. Given those circumstances, I have asked the buyers to supply a mortgage pre-approval letter from a reputable lender as part of the sales contract. I realize the pre-approval is not the same as a mortgage commitment, but my understanding is that it is reasonable and customary on Long Island and elsewhere for sellers to ask for such a document. My attorney is telling me not to bother with it. I believe he is wrong. Any thoughts on this would be appreciated. Thanks.

Regardless of whether I represent a seller or a buyer, any offer needs to be accompanied by a pre-approval! Too many buyers think they can afford "X", when in reality they can only afford "Y" because they never ran all the numbers (especially the effect of RE taxes!) and don't realize the true monthly carrying costs.
In fact, when you think about it, doesn't it make sense for a buyer to obtain a pre-approval before shopping, so they know what they can afford--before they fall in love with a house only to find out it's out of their (financial) reach?

[pidge1114]

Do it.

[Lori Brewer]

It is absolutely reasonable to ask for a pre approval letter. Make sure it's a pre approval and not a pre qualification letter. For pre approvals, some due diligence is done to confirm statements of income etc. pre qualifications just take the buyers word for it.

When I'm listing a house, we always require pre approval letters with offers and before advising my clients to take the offer I call the mortgage lender to get a sense of the credit/ finance situation of the buyers. Honestly, there should be no problem getting this letter and if the buyers protest a lot I would think long and hard before moving forward with the contract.

[85dumbo]

Unless the buyer was cash only i would not consider any buyer with out a pre approval letter.