Preapproval letters for REO properties

Today I will discuss one of the most glaring issues - the preapproval letter. The truth is many banks don't care if you have personal letters from the World Bank President indicating that you are the wealthiest person on the planet.

If you want to have any hope that they will accept your offer, you need to be approved with thier lender. This does not mean that you need to finance with that bank. You can submit your offer before being approved by the owning bank, but the bank will not accept your offer until they have approved you themselves, which means you need to supply all the necessary paperwork in short order. Same goes for cash offers. Must provide proof of funds even if money is out of the country.

If another buyer gives a similar offer and is approved before your clients are, that buyer's offer will be accepted. I have also seen situations where very good offers were rejected simply because the buyers and buyers' agents took too long to submit the paperwork that the bank needed.

So if you want to succeed in your offer, ask very early on what is necessary to get approved by the bank. Or simply what you need to do to get your offer accepted.