Pre-approval Package prior to LOI?

9 Replies

How do I go about getting a pre-approval?

I don’t have a property under contract yet, but the idea I had is to present a minimum performance scenario. Basically agreeing with a lender that, if I find a property that produces certain numbers or better, then they’ll fund the deal post a formal inspections.

My goal is to shorten my financing contingency, & be a more attractive first time buyer.

Thanks

J

You're mixing and matching 1-4 unit residential stuff with commercial real estate stuff.

Residential real estate doesn't use LOIs, and commercial real estate doesn't have preapprovals.

Providing a broker or seller with proof of funds and a pre qualification letter from a local lender greatly help getting a seller to take your offer seriously. Please note a letter from a local bank means way more than a letter from a mortgage broker. I recommend getting a letter from your current bank. If your current bank doesn't want to lend move your money to a new bank that wants to lend.

@chris_mason What about a pre-commitment to finance, if the projections are accurate or better?

Originally posted by @Jonathan Pluviose :

@chris_mason What about a pre-commitment to finance, if the projections are accurate or better?

 MOST commercial lenders want a ratified contract before they are going to spend a lot of time on it.

Originally posted by @Chris Mason :

You're mixing and matching 1-4 unit residential stuff with commercial real estate stuff.

Residential real estate doesn't use LOIs, and commercial real estate doesn't have preapprovals.

 That isn't exactly true . I have actually obtained a pre-approval letter from a commercial lender for a 10 unit multi-family that I was trying to buy a couple of months ago.

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