Richard L.  McKinney P.A., For Results that MOVE you on the Treasure Coast! (Atlantic Shores Realty Expertise)

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Rainmaker
749,222
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

WHA . . . no, of course not. Preapproved for an executive estate, a McMansion, a tract home or a teardown in the hood?  
Yeah, I would have done the same. Address or not, there needs to be a PQ loan amount that is at least equal to the offer price. 
These guys are dreaming of a low appraisal and a renegotiation . . . LOLLL

Nov 15, 2017 05:40 AM
Rainmaker
3,214,364
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I always want to know that the buyer is pre-approved for at least the amount they are offering.

Nov 15, 2017 05:41 AM
Ambassador
3,446,297
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

The letter would be sufficient here and, in fact, that is the way to go (as a buyer) to not play your hand during negotiations...

If you share the Offer price on the pre-approval, is the seller to believe that's the most you are approved for?

Conversely, if you share a pre-approval with any number above your Offer price, it's a glaring representation to the seller that you CAN go higher.

So, the lender has obviously looked at the property and seen the list price - saying that they are pre-approved to purchase the home at 123 Main ST doesn't glaringly give away the top dollar the buyer can go to.

Nov 15, 2017 06:33 AM
Rainmaker
1,558,194
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Nope. Have to wonder what that LO was thinking. If we handed him 'back' that piece of paper & said 'tell me how much this buyer qualifies for?' 

His answer would be 'I can't'.

Nov 15, 2017 06:03 AM
Rainmaker
1,115,008
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Nov 15, 2017 05:55 AM
Rainmaker
3,367,202
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

No, no, no! It is more of a joke!

Nov 15, 2017 05:50 AM
Rainer
243,739
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Preapproval needs the following information: sales price and loan amount they have been approved for, middle FICO score, the interest rate used to qualify, names of borrowers and number of days to close. Loan Officer should work with Buyer's agent to fine-tune BEFORE they write the offer.  

Nov 15, 2017 11:50 AM
Rainmaker
1,020,361
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

As a Buyer's agent I would expect this to be kicked back immediately. As a Seller's agent the same holds true. Real estate is not a guessing game!

Nov 15, 2017 10:13 AM
Rainer
244,897
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

This is one of those fence sitting moments. I like to handle it with a figure when we are on the listing side and I like to keep it vague when representing my buyers. I know some may try to slaughter me on this one, but I'm doing my best to represent my clients the best.

Nov 15, 2017 07:51 AM
Rainmaker
1,040,855
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

It wouldn't be enough for me if the seller is my client I would want to see a qualified purchase "Price" on the preapproval letter.

Nov 15, 2017 07:04 AM
Rainmaker
1,524,138
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

I prefer to blacken out the amount when I provide the inital offer but also include pre-approval letter with contract amount to be provided within 24 hours of acceptance.  I know that I have a qualified pre-approved buyer for the amount I prepare on the offer.  I explain to buyers that they can get a new letter for the offer amount, blacken out and provided later or give the letter in hand that is for more than purchase offer. In a market where move in proeprties move quickly the best that can be done sometimes is at least get the offer submitted asap and follow up with exact amount letter later.

Nov 15, 2017 06:55 AM
Rainmaker
3,052,363
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is common here they do not put an amount but a property address so they dont show what the buyer can afford trying to head off higher counter offers. For me it depends if i know the bank or mortgage company which quickly tells me if it is good or bad

Nov 15, 2017 06:32 AM
Rainmaker
576,889
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

If my clients had a pre-approval letter from their financial institution indicating the amount of their approval, I would hesitate to disclose that to the Seller.  I do tell them what their down payment amount is, and they were pre-approved. If the letter shows they are approved for a much higher amount than the listing price... I think it would put the sellers at a distinct advantage and the Sellers would expect full asking price and perhaps no room for negotiation?  

Nov 15, 2017 06:30 AM
Rainmaker
1,384,327
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Richard L. McKinney P.A. I agree! I want to see the amount in writing.

Nov 15, 2017 06:27 AM
Rainmaker
2,485,567
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The only acceptable language to be spoken in Real Estate is literally 100% everything else is sales talk...APPROVED vs pre-approved? Choose one

Nov 15, 2017 06:22 AM
Rainmaker
781,133
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

DID you just substitute 'qualification' for 'approval?"

In this case I would submit a release form allowing the listing agent to contact the lender to verify the status of the loan application.

The listing agent has an obligation to protect the home owner. Buyers with bogus paper damage the seller.

In your example if the buyer were beefing up the deal with 50 to 80% cash that would be encouraging. At 95% financing I see red flags.

Nov 15, 2017 06:07 AM
Rainmaker
1,260,113
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Should be amount.

Nov 22, 2018 08:25 PM
Rainmaker
1,699,668
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

No way!

Interesting question and great answers.

Thank you.

Nov 22, 2018 08:12 PM
Rainmaker
547,602
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

I typically do not submit a PQ letter with no amount...  

HOWEVER...if I did...what makes you think it is up to you to nix it?

Unless it is cash, there is no guarantee about anything...a PQ letter means absolutely nothing...because there are so many more hoops to jump through...and the buyer has all kinds of "OUTS".

On rare occasions, I have had buyers that refuses to submit a financing letter or POF to the seller...I even had bank letters that say the buyer is approved to purchase property at B street, with no price mentioned. 

Common sense would dictate that this would mean the advertised price.  The smart LA"S did not kill the deal over it.

Where in the contract does it say the a buyer MUST provide it?  It is a habit, or custom, but not the law...

Eve

 

Nov 15, 2017 03:46 PM
Ambassador
903,147
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

How can it be a pre-approval without a price?  That's absurd.

They could put the price at their offer price and not the listing price, but to not have one at all?  Are they preapproved to buy 123 Main St at list price?  At a substantial discount? At a price 10% higher in case of a bidding war?

 

A lender issuing preapprovals with no price is doing their cients a disservice.  

Nov 15, 2017 01:29 PM
Rainer
198,607
Sharon Altier, SFR
Lawton Realty Group, Inc. - Elmhurst, IL
Your Real Estate Partner

lol!  I would bounce it back as well!  I had an agent place "final" offer in with no backup of buyers being qualified.  When I pointed that out, she said she represented them on several homes and previously told me that.  I said her comment didn't mean that they were qualified and she was asked to present a final and complete offer; which she didn't and lost on bid.  She was furious.  I would think more so at the person in her mirror, but no, she began spewing such unprofessional banter and insinuating there was discrimination.  I hate when people can't admit they made a mistake and want to blame it on someone else.  Be professional and prepare offers correctly. 

Nov 15, 2017 01:11 PM
Rainmaker
388,350
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

I've seen it quite often.  Basically the buyer doesn't want to disclose how much they qualify for.  The psychology behind it is because they don't want seller to start thinking that buyer qualifies for a lot more and therefore, should pay more than offer price.  Everyone has a different opinion on this.  

Nov 15, 2017 12:36 PM
Rainmaker
241,769
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Our Arizona Association Of Realtors (AAR) contract requires the use of the AAR pre-qual form. This form does not specify purchase price, but instead specifies the amount of loan, type of loan and payment the buyer is qualified to receive. It also lets the seller know how much work has been done by the lender ie: income verified, accounts verified, tax returns checked, etc. The lender can add the purchase price in the notes section.

It kind of avoids the problem of max qualified price that just happens to be the exact amount of the offer. Especially when they are offering less than full price.

 

Nov 15, 2017 11:20 AM
Rainmaker
5,122,305
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Absolutely NOT..... 

that's no better than a full price offer with the contingency of selling a home.....it's an empty bag!

Nov 15, 2017 08:49 AM
Rainer
53,318
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

As a Mortgage Banker, a borrower(s) must be approved for a certain amount, end of story. What drives me crazy, is when I issue you an approval for a maximum mortgage amount and you guys call and want me to lower it,so you can negotiate a sales price. What is even worse is you show them homes they can't afford, without considering their down money, debt ratios,etc. Many mortgage people are pushing the debt ratios as high as they can, then you want them to get a higher mortgage. It just does not work that way.

Nov 15, 2017 08:41 AM
Rainmaker
2,826,741
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

No. Show me the MONEY!!!!

I do not care if the address is on the letter ... buyer vetting is essential.  

Nov 15, 2017 08:36 AM
Ambassador
4,071,112
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Nope, not good enough in my book for my sellers. It's rare, though.

Nov 15, 2017 07:57 AM
Ambassador
2,364,110
Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 No, absolutely not.

Nov 15, 2017 07:48 AM
Rainmaker
1,847,079
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I can see both sides of this one

Nov 15, 2017 07:09 AM
Rainmaker
5,507,728
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Nope.

Nov 15, 2017 06:38 AM
Ambassador
1,656,366
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I have always done it that way. To show that a buyer is approved for more is biased in favor f the seller.

Nov 15, 2017 06:06 AM
Ambassador
4,301,228
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I don't think so.

Sep 09, 2018 11:27 PM
Rainmaker
4,162,030
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I would demand a pre-approval letter for the amount.   If the price is negotiated higher, how would you know they are still approved?

Nov 18, 2017 07:16 AM
Rainmaker
3,243,607
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I agree with you  No!

 

Nov 17, 2017 04:19 PM
Ambassador
2,896,967
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

no.  just no.

Nov 16, 2017 10:15 PM
Rainmaker
569,460
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

There is no need to put the amount on there. If they are qualified for $200,000 but offering $160,000 it puts them in a weaker position to negotiate. All the Seller needs to know is that the bank is willing to lend them the amount necessary to purchase the home. As the Seller's Agent, that's all you need to know, too!

Nov 16, 2017 06:56 PM
Rainmaker
365,235
Jill Murty, Realtor - Orange County, CA
PREA Realty - Laguna Niguel, CA

There was a trend years ago for the lender to issue a letter stating the buyer was pre-approved for the amount necessary to purchase the property at a particular street address, but I haven't seen that used in quite a while.

The buyer's agent should do what you asked and provide numbers.  Resisting will not help her client buy your listing.

What are you doing countering back verbally?  You know you can't do that.  

Nov 16, 2017 12:32 PM
Rainmaker
1,264,277
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I do pre-approvals at the list price or offer price (whichever is greater).  I love seeing ones that state they can go WAY above the offer price (as the listing agent).  Lets me know I can come back higher.

Nov 16, 2017 09:20 AM
Rainmaker
4,797,872
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

No, it is not.

Nov 16, 2017 06:42 AM
Rainmaker
3,054,229
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

In a word...NO!

Nov 16, 2017 03:11 AM
Ambassador
3,983,742
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

It doesn't work for me. Thank goodness I know most of the lenders and can pick up the phone and ask.

Nov 15, 2017 08:42 PM
Rainmaker
1,500,682
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I never had a letter without a price indication. Why even the agent argues about? Just call the lender and get a new proper approval in minutes. 

Nov 15, 2017 08:23 PM
Rainmaker
3,983,713
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Putting a dollar amount on the letter can put the buyer at a disadvantage

Nov 15, 2017 05:01 PM
Ambassador
4,372,645
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Without an amount it can hardly be considered an approval

Nov 15, 2017 04:56 PM
Rainmaker
479,861
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I would require that the amount of pre-approval must be stated (in writing) on the pre-approval letter.  Otherwise it's a NO.

Nov 15, 2017 04:19 PM
Rainmaker
758,867
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

A serious buyer will want the strongest pre-approval letter possible submitted with their offer.

Nov 15, 2017 03:59 PM
Rainmaker
4,432,467
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

no

Nov 15, 2017 12:29 PM
Rainmaker
3,129,025
Richard Weeks
Dallas, TX
REALTOR®, Broker

No, kinda of defeats the purpose.

Nov 15, 2017 10:42 AM
Rainmaker
1,035,713
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

It needs to be local. If not properly document or some obscure internet based company I do not present to sellers-incomplete documentation.

 

I had buyers bringing me 5 preapprove letters. BoA, Citi, WellsFargo, Capito1, and East and West. 

Nov 15, 2017 07:41 AM