Bank Qualifying Letter: REO Properties
I have a few REO properties I'm going to be putting offers in on tomorrow. I'll be getting some qualifying letters from the bank I work with on each. My question is, for negotiation purposes, is it best to get a qualifying letter in the exact amount of your offer? Is it better to leave some wiggle room in there?
For example:
If you're offering on an REO that's asking $50K. Your offer is $40K. Is it best to get the qualifying letter at $40? $42? $45? $50?
My thought is if you have one showing $50 the bank would just think "Well he can afford asking, so we'll stay at asking."
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Have it written for the Maximum you can qualify. No seller wants someone who can barely, maybe, qualify for the loan.....they'd rather have someone they have confidence in. I have buyers who show $400k cash POF's when offering on $150k properties. The worry about "they will know I have more" is just silly. BTW, do you have a legit lender that will actually lend less than $50k?