A POF from a HML is Not a POF from from You for a cash offer.....it is a loan "preapproval", assuming you get that also from your HML. How much it carries depends on the knowledge of the seller.....for an educated seller it means very little.....it means you may get the loan if it meets the HML's criteria (an unknown), if you have the additional cash needed, blah blah blah.
@Jason D. this would be continent upon financing. The plan is to use a HML unless our private lenders offer a better rate.
We’re on the lookout for our first deal, so the specifics of the process is new to us. Do we simply say “contingent upon financing” in our offer and submit the pof from the lender? I just fear we won’t get through the door of many sellers, especially if we try to buy a foreclosure from a bank.
The main point to make to the seller is that the investor funding you are using will enable a much faster close (10 days to two weeks) than conventional financing would be - less exposure for them since the property will not be tied up longer.