Los Angeles

[mrs2012]

Hi. We finally submitted an offer on a house over the weekend. The seller came back with a counter offer today. Among the conditions was to get a second pre approval from another lender. This is a standard sale and not bank owned or anything like that. Is this normal? Is this legal? What could be their intent? Any advice? My agent says it's perfectly fine. I don't think so but I want to hear what you guys think.

[vfxdrummer]

I've heard so many tales recently of banks freaking out in the final hour, and loans going sour.

Evidently, it's difficult to close loans in the current environment. I say this based on hearsay & not personal experience.

That being said, I have an approved over on a home, and I am very anxious about the deal closing.

I imagine that the seller wants you to have 2 pre-approvals to better your chances of actually closing the loan.

Just a guess.

[agl25]

Why would it be illegal? I can't imagine that there would be anything wrong with them requesting this. Sounds like they just want to be more certain the loan will close before accepting your offer. Assuming you really are qualified for the loan, providing them with this extra assurance shouldn't be any trouble for you.

[basschick]

the first place we ever looked at required a pre-approval through the owner's lender, and we've seen several that require b of a pre-approval.  i don't think it's unusual, and none of the agents we've worked with found it an issue.  the intent is that if the loan through your lender falls through, you can go with their lender and the owners will still end up making the sale.

[vfxdrummer]

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basschick wrote:

  the intent is that if the loan through your lender falls through, you can go with their lender and the owners will still end up making the sale.

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+1

With it so difficult to close a loan in the current climate, sellers just want more assurance that your deal will go through.

That's my educated guess.