991,652
It depends on the property type really, but for the most part - specific is better IMO
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Will Hamm
Aurora, CO
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Nina Hollander, Broker
Charlotte, NC
152,661
I like price-specific ones.
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Will Hamm
Aurora, CO
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Nina Hollander, Broker
Charlotte, NC
3,071,489
The one that can get the loan done!
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
636,527
We run every Buyer through both a "manual" (DE Underwriter) and a "automated" underwriting system (DU/LP) up front to assure no surprises (so our clients can make offers with confidence). Once this is done, we customize as many pre-Approval letters as requested to match the negotiation strategies of our Borrowers/Agents. If Agents insisted on this protocol, we would flush out the bogus pre-Approval letters significantly.
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Troy Erickson AZ Realt...
Chandler, AZ
4,800,132
I typically will ask a lender to give me an approval with the price we are offering and change it should we need to go higher.
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Troy Erickson AZ Realt...
Chandler, AZ
1,231,853
Doesn't matter as long as this buyer is qualified to purchase at offered price.
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Will Hamm
Aurora, CO
5,115,878
My lenders just ask me how I want the pre-approval written.
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Will Hamm
Aurora, CO
3,416,038
I like having both depending on the situation. For a buyer, i like the specific ones, as a listing agent, i want to see how high that buyer can go
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Nina Hollander, Broker
Charlotte, NC
7,869,891
They are usually based on price range rather than a specific property.
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Nina Hollander, Broker
Charlotte, NC
1,513,143
Most listing agents here want price specific not a general one.
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Nina Hollander, Broker
Charlotte, NC
4,434,177
5,257,589
I'm with Troy - it's not wise to show your hand to the sellers with the maximum pre-approval amount.
979,596
Sally and David - I typically will get property and price specific pre-approvals. I don't want a pre-approval that shows my buyer is pre-approved for $400,000, when they are only asking for a $340,000 loan.
4,319,773
Sally K. & David L. Hanson - usually I get the pre-approval prior to showing properties - so it is not specific to a home.
And with my lender, I do get an idea of limits for the buyers - that really helps.
1,506,773
I prefer:
"Mr. and Mrs. Buyer is pre-approved for $700,000 based on a full doc review and first round underwriter review."
I don't like property or price specific ones. It makes negotiating a pain and looks silly if you have to submit a pre-approval with a different house's address because your lender couldn't be reached.
Then the last line states how good of a pre-approval it is!
3,350,439
5,583,328
we've seen both.... and we play each one as it's delivered.... we make sure that the final letter confirms that the buyer does qualify for the final sale price that's negotiated....
4,966,091
1,617,916
225,526
Thanks Sally K. & David L. Hanson for posting such a great question.
As a lender, I do both, but with a twist. I do a general when the buyer is just starting to look, then a property specific when they put in an offer. Most lenders use a 36% DTI and guess on the taxes and insurance figures. Fannie Mae will give approvals up to 45%, and FHA up to 55%, so there is a big range of what a buyer can get approved for. Here in Illinois, the taxes vary greatly in each town, and sometimes from each street, so you have to be careful on pre-approvals. On top of the pre-approval, I give the maximum monthly payment they can afford and give the buyer and Realtor the formulas to calculate them, so they know if they can afford it, before the show it. Adjusting the pre-approval takes me less than a minute, so that has never been a problem. Pre-Approvals are good for 90 days, before we need to re-run a credit report
1,728,667
I insist my buyers have property-specific Pre-Approvals, or not quite as good, Pre-Qualification Letters.
1,847,621
It actually works for a price range based on our taxes for different counties. Many lenders are not very flexible about it. I had one the other day where the pre-app already expired & it was only 5 days old. Why write it up then?