help, is this legal to do?

Question

Hello, I currently have 2 separated Pre-approval letters from 2 different lenders. 1 from a mortgage broker and another from a credit union. My question is can I use both separated approval letter to get 2 different properties under-contract to purchase ?

Alan Lacey · Answer

If the preapprovals reflect the cost of the other property tha. It shouldn’t be a issue, but would seem like better to do both with the same lender if that as the case. If nothing else just to make process easier.

David M. · Answer

@Isiah Ferguson

At least in NJ, I couldn't be somebody's real estate agent and do that unless you had the financial capability to close on both.  In NJ, when you submit an offer (at least through a real estate agent), you are representing that you have the financial ability to close the deal.  So submitting two offers when you only have the ability to close on one property is misrepresentation (on the the part of the agent and on the part of the buyer).  Good luck.

David M. · Answer

@Isiah Ferguson

You may have to check with your local/state law/regs.  For example, in NJ you can close with any lender.  I hear in some other states you need to close with the lender that provided the PoF/pre-approval that you submitted with your offer.  Unless there is something about your market, I'm not sure what issue you have with two separate approvals ASSUMING you truly can close on both, and you aren't guessing about what a lender will approve you for when you have two loans.

Good luck.

Isiah Ferguson · Answer

@David M.

I have to ability to close on both. 1 closing will be direct to seller and another will be with an agent. I was not sure because I have 2 different approvals from 2 different financial institutions.

help, is this legal to do?

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