PreApproval Letter Before an Offer Can Be Made?

Question

I am making an offer on my first rental, the agent says I need $500 Ernest money, and a pre approval letter or proof of funds before I can even make an offer, I know the Ernest is common but is the proof of funds/preapproval also necessary, or is there a way around this?

Thank you!!

Seth Ferguson · Answer

The letter is a good way of showing the seller you're able to close on the property and have your ducks in a row. Barring an actual letter, having something from your lender stating you're able to get financing would make the seller more comfortable. Comfy sellers are easier to work with.

Kiera Underwood · Answer

@Kaelin Stewart It depends on the seller and the situation. It sounds like this seller likes to have one with an offer and the agent knows it, however, there are sellers that wouldn't require it. I'd suggest getting a general pre-approval regardless so you're not scrambling when you do lock something down.

Russell Brazil · Answer

Yes, without a lender looking at your credit and assets, your offer is as good as a homeless persons offer.

Wayne Brooks · Answer

Yes, knowledgeable sellers/listing agents aren’t going to take a property off the market without you showing some ability to buy.

PreApproval Letter Before an Offer Can Be Made?

PreApproval Letter Before an Offer Can Be Made?

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