Pre Approval Letter as an Investor
We are new to REI, but recently received a 600k guidance line of credit through a bank here in Texas to purchase properties to in turn rent out. We have 2 so far, purchased 1 cash, and are currently working on a short sale. However, we have continuously ran into the same problem when working with our (2) realtors in Texas and Oklahoma on certain deals: a pre approval letter. We do not have this for our line of credit nor do we have regular statements showing the remaining balance. It's hard to put in a quick offer when this is requested. Our last deal we used an email from our lender stating we had the funds available. That is not being accepted for the short sale. Our bank is telling us this is common and they do not give pre approval letters. Have you ran into this? Is this common? Is this maybe because we are new? Just looking for advice based on experience. Thank you all!
Most Popular Reply
If Seller is a bank then you need to draw from the line and put it in your checking account and show the statement with the account number blanked out. No bank short sale default manager is going to accept a "proof of funds letter" that is not applicable. You can apply for a pre-approval with a lender but remember you are wasting their time if you intend to pay cash. Do you have the income, credit and assets to qualify for a saleable non owner occupied loan (I guess you do as you got the HELOC). Go to another lender who does TBD non owner pre-approval with solid fast close like 15 days or the default manager will pass over you for cash offer. Or apply for a debt service ratio loan where you put enough down payment to make it cash flow.