When putting a contract on property and asked to present a pre-approval letter, can I use that letter for multiple deals, or would I have to get pre-approved for every single property? Also, may I elect to have a company name on that letter eventhough I was personally approved?
2007-05-08 06:03:26 · 6 answers · asked by JRela2000 1 in Business & Finance ➔ Renting & Real Estate
A pre-approval letter is usually prepared by a mortgage lender that states the name of the lender, a application number, the applicant(s) name(s), and the maximum amount they have been pre-approved for. These can be used for multiple offers. To strengthen you negotiating power it would be wise to request the pre-approval letter be written for the amount of the offer rather than the maximum amount. These would be a one time use letter.
2007-05-08 06:12:59 · answer #1 · answered by darinalvarezrealtor 2 · 0⤊ 0⤋
The letter of approval should be good to use on multiple loans or multiple deals as long as at the end you are only signing or representing the pre approval amount to the individual lenders. For example if you are looking at two seperate properties but only plan on buying one and they are both whithin your pre approval amount then you would be ok.
I do not hink you would be able to put a company name on it as your company/the company was not the party being underwriten by the loan officer. Business loans and personal loans are underwritten differently and representing one as the other might get you in to trouble.
I would recomend running everything by the loan officer you worked with for the most accurate answers for your specific situations.
2007-05-08 06:13:35 · answer #2 · answered by rtirado_sells 1 · 0⤊ 0⤋
get a bank to pre-approve you. This person does not sound right - is he a private lender or small mortgage company principal? The bank will provide the letter; you do not have to show it to anyone at the bargaining stage so how would you "lose bargaining power"? You do not need to show a seller anything at the bargaining stage - except for your earnest - the amount of money you put up to show that you are bargaining in good faith. That can theoretically be one cent, because then it is a monetary pledge that validates the offer. Most sellers want to see more money though. As for the real estate agents wanting to see something that tells them how much you can afford - is that a wrinkle in the US? In Canada one tells the agent what price range one is looking at. None of this "here's proof that I can buy a house worth $X so please can you show me some?"
2016-05-18 02:28:21 · answer #3 · answered by ? 3 · 0⤊ 0⤋
YOur loana officer can tailor the oan to suit individual offers. I often do this so that if my borrower is approved for a higher amount the seller doesn't have to know that but the letter can be reissued if necessary at a higher amount. It only takes a moment to update a pre-approval letter.
Your pre-approval applies to you, not your company. The mortgage backed securities investors make loans to individuals not entities. Your pre-approval letter should be addressed to you as the borrower.
2007-05-08 06:09:08 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Have your letter addressed "To Whom It May Concern." That will solve your first issue. Most contracts don't allow for multiple, simultaneous, deals as it will adversely affect your ability to obtain a loan. Finally, you have been pre-approved, not your company. In fact, it is doubtful that your company is credit worthy for a mortgage. Few, if any, lenders will extend credit to a company without someone signing as a personal guarantor.
2007-05-08 06:10:34 · answer #5 · answered by Anonymous · 0⤊ 0⤋
A good pre-approval letter gives you the most loan you can afford. Yes it can be used on many offers. Once an offer has been accepted then it goes with that offer.
I am a mortgage banker
2007-05-08 06:13:52 · answer #6 · answered by golferwhoworks 7 · 0⤊ 0⤋