Is a pre-approval letter required when making an offer?

**lbartowski** · 01-06-2011, 02:42 PM

My wife will be getting a substantial raise in mid february. I've talked with the loan officer at my credit union and she said we wouldn't have a problem getting approved and will supply a pre-approval letter...after she supplies a pay stub showing her updated salary.

The problem is that the house we really want is on the market now. Can we make an offer without this pre-approval letter if we set a closing date of late February when we will be approved for the loan?

It's a bank owned property. Will a bank be willing to accept such an offer? Thanks for the help.

**GeorgeFong** · 01-06-2011, 07:18 PM

Congratulations on your raises!

yes, you can make an offer without a pre-approval letter.
But you should always get one before you make an offer and also find out what your credit score is before making an offer. The Pre-Approval letter will make your offer so much stronger then without and especially truth when there are people competing for the property.

and do you have a Realtor representing you or are you doing it yourself?

George

**realestategirl** · 01-07-2011, 04:02 AM

A pre-approval letter is not needed when you are going to make an offer to a house, so long as there is no other party interested in buying the same house. One of the best home buying tips in this situation is to check the listing of the property and check if there are other offers.

**Greg** · 01-07-2011, 10:56 AM

1. You will be getting a pre-qualification letter. To get a pre-approval letter you have to actually fill out the loan application and apply for the loan. Most lenders do not do pre-approval letters anymore.

2. I have never heard of a bank that would consider an offer on a foreclosure without a pre qualification letter. Some banks even require you to get pre qualified from a lender of their choice. You can ask but don't get your hopes up.

3. before you make a commitment with your credit union shop around with some other local lenders. I have seen credit unions over charge and under provide because they have such a loyal following.

Talk to these other lenders now. Who knows, maybe you will qualify with some other lender without the pay raise.

**Dacelle Pano** · 01-12-2011, 09:38 PM

A bank can never lend you if you do not pass in their pre-qulification letter. Because it's their basis if you are qualified to the package that you lend from them.

**Luxury Homes Tampa** · 01-12-2011, 10:06 PM

Hi
So as to resonance normal to me. A Lot of employer will not give this type of in order as it put them in a lawful attach if for any cause the probable raise is drop or distorted. It too is not unpredicted for a depository to require that in sequence if you want that additional profits to meet the criteria for the loan.

**Chrisopher Moltisanti** · 01-13-2011, 06:59 AM

Re-read Greg's post.

**Bones** · 01-14-2011, 08:19 AM

It's been my experience that banks won't look at your offer on one of their foreclosures without a preapproval letter. Owner occupied property is a different story.

**MikeAustin** · 01-14-2011, 10:38 AM

A pre-approval letter makes an offer very strong, and it's not always necessary to have one before you make an offer. Although, any good real estate consultant will generally recommend that.

Banks will usually not accept an offer such as yours. But you should talk to them anyway, because it might be possible to work something out if they are willing to help you. So call them up and it will be easier for you to calculate your next move.

**minnesota-mls** · 01-14-2011, 05:17 PM

Here in Minnesota, the buyer would definitely need to have a valid preapproval letter included with the offer that he or she is sending over.

This is just our team's experience in our real estate market in Minnesota, but no REOs here will look at an offer without that preapproval letter.

Good luck with your hunting for that perfect home! Cheers!