If it is not too much trouble, some real estate professionals recommend requesting a lender for multiple pre-approval letters with different price ranges. The goal is to use it for negotiating with the seller where your pre-approval letter amount matches your bid amount to make it difficult for the seller to counteroffer with an amount over the amount in the letter.
However, it is also viewed as redundant to have multiple pre-approval letters because everyone understands that the buyer is not going to use up the full allowable pre-approved amount. In the end, the buyer decides on what they want to spend, not what appears on the pre-approved letter.
It becomes counter productive to show the seller a pre-approved letter matching the your bid because the seller will have doubts that you might have trouble getting financing if your bid is selected over other potential buyers with higher pre-approved amounts.
0 Comments