Would you be insulted if

[Franny]

As a buyer would you be insulted if you were required to submit a pre approved letter from your bank when submitting an offer/contract on a multi-million dollar home?

 

[John R]

not really, i'd want to come prepared, and have the seller know that i'm serious.


jr

 

[SHELLY]

As a buyer would you be insulted if you were required to submit a pre approved letter from your bank when submitting an offer/contract on a multi-million dollar home?

If the buyer is serious about the home and has nothing to hide, I don't see why it would be problem.

 

[Franny]

Thank you both for the input.

 

[DBOldford]

No qualified person should be insulted. That is what pre-qualifying a buyer amounts to and any seller is more inclined towards an offer that has been pre-qualified. Good luck.

 

[Mermaid]

No qualified person should be insulted. That is what pre-qualifying a buyer amounts to and any seller is more inclined towards an offer that has been pre-qualified. Good luck.

That is what I've always gone by, too. If you are pre-qualified for a mortgage before you even start with negotiations, you are working from a point of strength.

Very eye-catching title for this post! :clap_1:

 

[Bob]

Bankrate.com had an interesting article on this. The prequal letter is great to have, but may be more worthless than the paper it's written on depending on the source.

 

[Garner]

My first broker taught me that if a buyer states that "money is no object", that literally, money is probably not an object that they posess. I think the same logic could easily apply here.
However, there is a different side to it - because pre-qual and pre-approval letters have specific dollar amounts stated, a buyer might be hesitant to show their cards, i.e. inform the seller that they can afford 1.25X when the offer is X. If that's the case, then the buyer should be willing to produce the name and phone number of his banker, who would (with the buyer's permission) be able to verify that the buyer is qualified.

 

[DBOldford]

This knife cuts both ways. A seller might also realize the true ceiling of their buyer's purchasing power and be more inclined to a compromise on price...i.e., can't get blood from a turnip. This assumes there are no other offers. Keep in mind that just because a buyer could qualify for more doesn't mean they're going to pay more. The jeep can stop pretty quickly and get thrown into reverse when one's upset point is exceeded.

 

[Garner]

Keep in mind that just because a buyer could qualify for more doesn't mean they're going to pay more.

You're absolutely right about that, but generally the pre-qual letters have the property address on them, and when working with a buyer, you don't want the seller aware of the buyer's top price.