Lender pre-qualification is less important to the offer than it is to me with the client. I need to know that once we do have the property and are ready to go that the borrower has made the loan application and provided what the lender needs to process it.

Second question, the preapproval (specific to the property) amount is not to exceed the offer amount unless you're making a full price offer. If I'm the seller's agent and they're low-balling us and qualified for more, then we're going to try to get more.

I require a pre-approval before ever even showing a property much less writing an offer.

While Sellers agents in our area expect you to have a prequel letter when submitting an offer Peter Mohylsky  I'd say it probably only gets done about 50% of the time. WHY, because of agent laziness and new agents may have fear of offending a new client by asking (ignorance).

I require a pre-approval or proof of funds before showing a client property. If the pre-approval is higher than the offer price, the lender will draft a revised pre-approval letter for the offer price to be submitted with the offer.

Only pre-approvals and in the amount of the Offer.

Lender pre-approvals and proof of funds are necessary if you want an offer to be considered.  Each market is different and most buyers understand this these days. Proper preparation of the buyer and the documents involved are critical to a successful offer acceptance regardless of market conditions. 

Prequel?  You mean prequal.  I had scripts for movies dancing in my head.  What Candice A. Donofrio and Corinne Guest stated. A

We require a Pre-Approval letter.

    Pre-approval letter, with the amount stated on the offer.   If the letter gives a higher price than the offer, you will probably get countered (unless it's a full price offer).

      Good Listing Brokers insist on a pre-approval or proof of funds letter before taking a property off the market, or marking it in MLS as contingent under contract.  And you might be totally wasting your time, if the Buyer "thinks" that they can get the loan, but they have not gone through a pre-approval by a Lender.

Regardless that some can get a letter easily a lot of these lenders are checking their income & credit atleast. It's standard to include a Prequal letter with your offer here. I would get the letter written for the amount they are offering, not more.

Before drafting offer- yes. I've had Pre Qual letters that worked fine. It depends on how much research and verification the loan officer has done before issuing it. Many pre approval letters also have contingencies. Amount is what they can afford when first issued. It can be adjsuted later if need be.

I don't. I want a full pre-approval letter to submit with a contract for the amount of the offer. And I want one of those when I receive contracts for my sellers.

No.  Prequal letters are not acceptable. 

Agreed. They are not worth the paper they are written on. 

My standard of practice is approval with underwriting approval even before the buyer finds the home.  Yes, my lender provides such letters. 

Pre approval or proof of funds before we open the first lock box.

A pre-approval letter must accompany the offer, so I require a pre-approval prior to submitting an offer. And the pre-approval is almost always in the amount of the offer, not more.

We have done pre approval letters for years now. Pre quals get ignored because as you say, they are worthless unless credit & a few other things are looked at.

Lots of times the  buyers agents put in a low amount so that you won't counter. In fact, that's a really stupid idea as it just shows the seller that the buyer can't afford the property.

I look for a letter from a local and trusted lender. I look for an amount at least the purchase price. I also like to call the loan officer. 

Never, normally a custom pre-approval to the amount offered, ideally from a local direct lender with in-house underwriting.

I require a pre approval with automated DU prior to showing property.  I need to know they can afford the homes we're looking at.

Not a pre-qual letter but a pre-approval is needed in the amount of the offer, and a discussion with the lender to verify some things. 

I echo what others have said - I require it before spending time showing homes.  But a preapproval letter is more what I'd like when submitting an offer.

A pre-approval letter is preferred. If a pre-qual is all that I have, I will go for that. Whether the letter is for the offer amount of the full amount for which the buyer is approved is a decision made based on the transaction and what seems to be best at that time.

Every time since our market moves fast and sellers don't want to lose market time waiting to see if the buyer can get a loan.

There was a time when I did not require any proof. People were more honest then and the process was easier to navigate. In my later career, I required proof of funds or a pre-approval letter subject only to an appraisal of the property. 

The flow of the deal, if there is to be a deal, requires the basics. Pre-approval is the mark/tool of a serious player/buyer. Lack of it says the opposite too

I do and for the offer we make as the amount.   Agents will not consider it a valid offer without it.  Some get a full approval before and that is much better for all concerned.

Yes, a pre-qualification or approval must accompany the offer. The amount shown on the letter must support the offer. I advise buyers that the seller will not take the house off the market based on a buyers 'wishful' thinking.

"I don't want this one to get away!"

"Here again is the number for Movement Mortgage. Call them now."

I will show property once without a pre approval. Then I will discuss with them the importnace of one. They seem to be pretty loyal after that. I will not submit an offer witht out one. 

I help my buyers understand that if they want to get the home they most desire they need to be ready and prepared.

They need to get with a lender to determine how much they borrow. This is the gage I use to find home for them. No use chasing $100,000 more than they can buy.

A letter from the lender or financial institution must accompany all offers if they expect to be taken seriously.

This is how we can have a higher success rate for our buyers.

A pre-approval is sent in with every offer. It is pertinenent to know that buyers can perform at the offered amount without wasting anyone's time.

We prefer a Pre-Approval Letter and for the amount offered

Having a letter in hand or a chat with a trusted local loan officer is comforting.

If not it has to be done in 5 days from offer. We don't write anything on someone new without it.

We prefer to submit offers with prequel Peter!

Yes. Depends.

Maybe.  It depends on the client.

Prior to showing homes.  I need to know the limit as homes still sell more than asked. Not everyone has $1.5M. Release all contingencies at offering including loan is fairly common in CA. 

I agree the quality of the letter varies, but when my clients elect to use my suggested lender, whom I've worked with for years, I can back the validity of it with my reputation. 

As to the offer amount or what they are actually qualified for, it varies depending on the circumstances.  In a competitive market, I want to show strength, so  pre-approval for more than the offer price often makes sense. 

Yes. We ask for it.

Wishing Happy Holidays to all.

only if the listing we are writing has said requirement in the MLS.  I would say that 75% of the offers/contracts in my market never get a pre-qual or pre approval letter and 95% of them close.  Selling vacation homes in a different animal and our buyers generally speaking show us (buyer's agent) a general letter of assets from their bank or brokerage and it's just not an issue.  

Yes, we require. 

Happy Holidays to all.

Always except for 2 occasions.  I knew the buyer very well

If there is time, I prefer a pre-approval letter.

I still want one that agents can call lender

For me, it all depends on the purchase price, and if the sellers agent requires one.