Updated over 15 years ago on . Most recent reply
preapproved loan for auctions
Hi BP members,
This is my first post in this forum :) . I'm from seattle area.
Ok here is my question. I read somewhere that i cannot use preapproved loan for bidding at auction. i have about 15-20% of the total price in cash with me. the remaining would be financing.
Can i bid with the cash i have in hand and finance the remaining amount.
Most Popular Reply
Chris, you are pre-approved, the property is not.
What you've got is a not too firm commitment to loan you XX amount of money on a property that the bank approves of. If you buy at auction, the bank has not approved of your purchase. They might, they might not. If they don't approve of the house, you have just purchased it with no way to pay for it.