I am doing my first short sale. As a part of the short sale package, the bank want a commitment letter from my (the buyer’s) lender. Most lenders would require an appraisal before issuing the commitment letter. An appraisal costs around $500 for a three-family I am looking at. It looks kind of funny to spend $500 on each short sale, while it is not even clear whether it would be accepted…
What to do?
The bank is asking for an approval letter.
Your lender should be able to give you an approval letter that says…
Mr so&so is approved to purchase the property located at_____
they have excellent credit and suff income to support the payment.
This approval is subject to an acceptable “appraisal” and final underwriter review.
If you need help send me an email.
its sounds like from your post, you have not talked to a lender about this specific deal. This is exactly what the seller (the bank) is trying to avoid (i.e. wasting time with people who turn out that they can not close the deal).
I asked for (and received) a prequalification letter for $250,000 from a lender based on my credit and income. The letter is not tied to any specific property - in fact it states that it is for investment property. Of course, the lender included some conditions that cover their interests. I could probably asked for a higher number, but I don’t really need it for the properties I’m buying.