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Regular Contributor
Heavanly1
Posts: 122
Registered: ‎09-14-2010

Pre-qualification from Wells Fargo REQUIRED with submission of offer??

Hello MyFico family,

 

I'm hoping you all may be able to help me with this. I'm currently interested in an REO property. The listing states that a pre-qualification letter (not a pre-approval letter) is required to be submitted with all offers. I've already been pre-approved with another bank who has been absolutely great to work with and who I intend on obtaining financing through.

 

From my understanding, a pre-qualification letter is not difficult to get. A credit check is not required and all you disclose is your income and your debt and the loan officer puts in a letter how much house you qualify to buy. Therefore, getting the letter is not the issue.

 

Here's the problem: I always have my loan office submit a pre-approval letter that states I'm preapproved for slightly more than the price I'm offering on the house. If I'm required to submit a pre-qualification letter, then the bank will know the maximum amount of home I qualify for and then (I think) use this information to their advantage during the negotiations.

 

Can someone shed some light on this for me? Has anyone gone through a similiar experience?

 


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Established Contributor
Breakthecycle2
Posts: 785
Registered: ‎09-15-2008

Re: Pre-qualification from Wells Fargo REQUIRED with submission of offer??

Just have them put in in the letter the amount you intend on offering. That's what we did.


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Valued Member
sredworb
Posts: 43
Registered: ‎08-06-2010

Re: Pre-qualification from Wells Fargo REQUIRED with submission of offer??

[ Edited ]

I know through Chase Bank a pre-qualification letter is only given to you after you have passed thru DU.
My LO said Chase no longer gives out pre-approval and only pre-qual letters after your credit is checked and submitted to DU.

Good Luck...


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Regular Contributor
Heavanly1
Posts: 122
Registered: ‎09-14-2010

Re: Pre-qualification from Wells Fargo REQUIRED with submission of offer??

That's what I'm afraid of.

 

There was another REO property that I was interested in that required a pre-approval from a specific bank before you could submit an offer. Because of this single requirement, I decided to not place an offer on it. That house had been on the market for going on 6 months and I'm assuming that pre-approval requirement has a lot to do with it.

 

If Wells Fargo does require me to go through the same hoops for a prequalifcation that I did to get a preapproval, then I won't place an offer on that property either.

 

What's the point of the requirement anyway? In this market, it seems like it would cause the bank to lose potential buyers.


Starting Score: TU 599 EQ 608
Current Score: TU 694 (lender) EQ 666 (lender) EX 696 (lender)
Goal Score: middle score: 750


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Established Contributor
happy0510
Posts: 804
Registered: ‎03-07-2008

Re: Pre-qualification from Wells Fargo REQUIRED with submission of offer??


Heavanly1 wrote:

That's what I'm afraid of.

 

There was another REO property that I was interested in that required a pre-approval from a specific bank before you could submit an offer. Because of this single requirement, I decided to not place an offer on it. That house had been on the market for going on 6 months and I'm assuming that pre-approval requirement has a lot to do with it.

 

If Wells Fargo does require me to go through the same hoops for a prequalifcation that I did to get a preapproval, then I won't place an offer on that property either.

 

What's the point of the requirement anyway? In this market, it seems like it would cause the bank to lose potential buyers.


I had to do this with a few offers. In my case it was called a "cross qualification".  Basically my LO sent over everything she had along with our pre-approval letter.  We also showed we were approved for more, but that has no bearing.  You offer to pay only what you want!!


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