Generally, real estate agents insist every offer for purchase is accompanied by a loan approval letter from the buyer before submitting the offer to the seller. Almost every state in the United States requires a loan approval letter before submitting the offer.
So why insist in loan approval letters?
Although loan approval letters don’t exactly carry much weight, the loan approval letter can mean more than only applying for a loan. The letter would be able to give the seller a valid reason to accept the offer form the buyer. Seeking efficient private money lenders Franklin would be able to provide buyers with a professional, active, and valid loan approval letter.
When attempting to make an impression on the seller, handing the seller significant ammunition to accept the offer is cruicial. However, there are mistakes that some buyers make. The common loan approval mistakes made by buyers include:
• Submitting an out of the area loan approval letter.
Agents frequently feel comfortable when they receive a loan approval letter from a lender that is well known and established. Receiving a letter from an out of the area or unknown lender could cause the seller and agent to get antsy since it would be unknown to them if the lender would perform.
• Submitting a pre-qualification letter instead of a pre-approval letter.
Pre-qualification letters vary from an approval letter. Most of them state that the loan officer received an application from the borrower. The letter also says that there is no guarantee that the lender will perform.
• Submitting a loan approval letter for more than the offered price.
Although it states that there is more money available than the offer price, it could be deemed as an unnecessary excess in the purchase offer. It would simply look as though the borrower wanted to put the excess money into his/her pocket.
Understanding that a purchasing a house isn’t something that would come easily is vital especially when handling paperwork. Being aware of how loan procedures work and seeking a competent and a well-established firm is critical when finding a private money lending firm.
BridgeWell Capital is one of the most trusted names in private money lending and ensures clients receive the lowest down payments and fast approval funding while guaranteeing hassle-free procedures.