I was encouraged to get my financing in place prior to submitting any offers on potential deals prior to submitting offers considering most Realtors/Sellers won't submit/accept offers from investors/buyers that don't already have financing in place (or a pre-approval letter from the financing source) accompanying the offer. So my question is:
1. If I get pre-approved (in order to get this letter) now but I don't find a deal, would'nt my pre-approval expire in a certain time and if I have to do that a few times won't that affect my credit score negatively?
I can see that not being too much of an issue if I plan on using Hard Money lenders and Private lenders but what if I am planning on using a conventional lender?
Thank you guys....
Regardless of what answers you get to your question you are going to have to get a pre-qual letter from a lender if you want to go the conventional financing route.
I have seen pre-approvals last 30 days and I have seen some last 3-4 months. It all depends on the lender and the specific lending programs that fit the type of purchase you are going to make.
You can wait until you have a property in mind to get the pre-approval letters, most lenders should be able to get you the letter in a day or two. You can start screening your lenders now and meet with them to determine which lender you'll want to work with and when you have your property lined up you can request the pre-approval letter to limit the inquiries on your credit. You do not have to have your credit ran to learn what their requirements are.
Questions to the lender should be what is there turn time to prepare your pre-approval letter, what documentation will they need, can you apply on line. I just had a lender yesterday give me a pre-approval for the purchase price of a property I was putting an offer in, he prepared the letter for the exact amount of my proposed offer versus the maximum that loan amount that I qualified for. I had never experienced that before, so next time that is a new question I'll ask the lender.
Thanks @Michael Noto
That is GREAT advice Cheryl. Thank you so much for the details. I'll be sure to implement those questions in my sit-downs with lenders. I appreciate the quick response....
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