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Got prequalified for a 210,000 house, but i changed my mind and want to buy another house for 170,000. Do i have to get another prequalified letter from the bank or can i give my agent the one for 210k?
Have you found a specific house for $170k that you want to purchase...or are you just wanting to lower the budget in your house search?
In either case; your agent should advise you to get a pre-approval letter with property address on it and the price you are offering when you do have a specific house on which you are offering.
If you show the full amount you are qualified for to a seller and their agent...you've lost some of your negotiating power.
You should get a pre qual letter that is tailored for the specific offer you're making. Important to have a lender who can do this on short notice when you are making offers.
Not usually a problem to tell them you want to spend less!
Usually the letter should match the amount of the offer… If you go back-and-forth with counter offers sometimes a new letter is sent to reflect that you still qualify for the new amount. Some lenders will write the approval in more general terms like "amount sufficient to complete the purchase at such & such address". No they will not pull your credit for each new letter.
I always recommend getting the letter for the amount you are offering and not a penny more than that. Most lenders are willing to write a new letter if a new price is negotiated and you are still within your actual approved amount. Don't let the other side know that you could pay more.
Dude, it doesn't matter. The letter is only to show that you can afford to buy the home. It doesn't matter if it's higher. Plenty of people can afford more home but don't intend to spend that much. Frankly, in a sellers market I like to know I have a strong buyer. When someone is buying at the top of their range I worry about them stretching the budget and being able to afford the home. I like when buyers have money in case something is needed.
You should get a pre qual letter that is tailored for the specific offer you're making. Important to have a lender who can do this on short notice when you are making offers.
Not usually a problem to tell them you want to spend less!
Dude, it doesn't matter. The letter is only to show that you can afford to buy the home. It doesn't matter if it's higher. Plenty of people can afford more home but don't intend to spend that much. Frankly, in a sellers market I like to know I have a strong buyer. When someone is buying at the top of their range I worry about them stretching the budget and being able to afford the home. I like when buyers have money in case something is needed.
And...
The $300,000 offer backed by a $300,000 preapproval looks like a buyer who is strapped and maxing out their finances.
I don't care if it is a $300,000 letter or a $340,000 letter.
It doesn't bother me to work with either.
All things being equal in a multiple offer situation, (I know that is a unicorn) which offer will you take? The one that says they are maxed out, or the one that says they have a bit of headroom over their offer amount?
Pre-approval and pre-qualification letters are not tied to specific houses, but, to dollar amounts for which you are likely to qualify for a mortgage, based on the financial information you have provided to the bank. All they do is show others (seller, realtor, etc) that you are a qualified buyer who is likely to be able to complete the sale ... and not just a 'tire-kicker.'
They are not a guarantee that you will buy a specific house -- or that the bank will give you a mortgage on any house you want to buy under the specified amount.
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