Are Prequalification Letters Needed...
Do you need to have a prequalification letter attached with your offer to purchase (I've been told it's a must to have)?
If you must have a prequal letter and have credit issues, what's the best way to go about getting a prequal letter?
I've located properties that I want to get under contract in order to wholesale them, but the prequal letter issue is a roadblock.
Any suggestions
[addsig]
No you do not have to have a prequal letter attached with your offer. If would help but you don't need one. If the properties are listed with a realtor it will be harder to get you offer accepted though. Look for properties that are not even for sale yet or fsbo's.
Getting a prequal letter is as easy as calling a mortgage broker and asking them to write one for you. If you have credit issues, then the broker will just write it a little more vague.
hope this helps,
clear2close
[addsig]
A prequal letter is no big deal. All it says is that there are loan programs out there that you may use for this purchase. A letter of committment seals the deal - you may no longer back out for financing reasons. I do not provide the latter on my deals because I always want an out. It's one of the few I leave myself. Good luck.
If you are looking at an REO, some banks require a prequal and a set amout of earnest money. As said above, find a good mortgage broker and this should be no problem.
Ron