Re: prequals for investor lending - Posted by Ed Garcia
Posted by Ed Garcia on December 24, 2000 at 13:13:48:
Real-estate brokers want a pre-qual letter because they don’t want to waste their time, and banks want this kind of letter to verify that you have the ability to purchase their property.
Where you would get such a letter would depend on where you decide to finance the property. Many investors are of the opinion that hard money lenders are the only lenders that will give you “market value” after fix up, for a property that is purchased below market value. That’s not true. Many times a small bank can be utilized as you lender as well. If presented properly, you can convince the bank to treat the deal as a construction loan.
To get a pre-qual from a mortgage company for a loan should be a pretty easy task. They are accustomed to accommodating their borrowers with such letters. However if there are major fix ups on the property, a mortgage company will not be a good lender to use, due to they make loans on properties that show pride of ownership.
A hard money lender can give you a pre-qual letter under all circumstance, however cost can be prohibitive.
Adrain, I’d like to wish you and your family a Merry Christmas,