In the past being pre-approved for a home loan before you submitted a formal offer provided negotiating power by assuring the seller of your financial position. However, with modern real estate transactions pre-approval is no longer simply recommended, in some cases it is a requirement. Furthermore, some REO transactions require pre-approval with a specific bank.

Although pre-approval may be required through a specific bank, in most cases the buyer is not obligated to use that bank for financing. For example, when making an offer on an REO property offered by Country Wide Financial, then a pre-approval letter through their finance department is often times required. However, if you would prefer to use “XYZ Bank” as your lender then you may do so.

We realize that some of our clients are sophisticated home buyers that may already have trusted lending advisors. However, if you are looking for a local lender to help you through the process then please contact us for a lender that can best suit your needs.