Local Lender

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I made a full price offer on a short sale of $165,000 with seller paying 4% closing cost.  I was approved through my work CU, however they are in LA and I am in FLA.  I also have my car loan through my work CU with whom I have a good relationship.  The offer was accepted, with the stipulation that I use a local lender.  I don't want every lender pulling my CR unnecessarily and for my score to drop.  I want to wait to see if the short sale will be accepted before I go to a local lender for approval, but the sellers are now asking for an approval letter from a local lender.

I have been  looking for a home for more than a year, but I don't want to wait 2 months, the short sale is not approved by the seller's bank, and another unnecessary inquiry on my report.  Any suggestions on how I can handle this issue.

[Anonymous]

Maybe they are thinking in terms of expediency.  Hope I spelled that right.  They are in a shortsell... they could be in preforclosure ... which for CR intents and purposes hardly makes a difference these days because the marks are hurting just as bad.  They may be concerned that an out of state bank will take longer to approve the property.   You have already have a pre-approval so you the potential buyer is good money but the process  can be dragged out do to the fact stated earlier.

But your concern is correct why should you waste your time jumping through another hurdle in efforts to become the perfect buyer when they haven't cleared their lender and can't guarantee anything even when you come with a second pre-approval from a local lender.  You should tell them you will get that when they clear their bank ... remind them that you are qualified but won't waste your time if they can't jump their hurdle on their end.

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daboss28,

That is what I am talking about.  I accepted their terms, however I won't seek a local lender until their bank approves the sale.

I already waited 3 months on a short sale, that did not work out and I am not wasting another inquiry.