mandatory compnay specific pre-approval

[Susan1]

What is the name of your state (only U.S. law)? NH

We are looking to buy our first home. We have chosen a buyer's agent and obtained pre-approval for a FHA loan from our lender. We have viewed many properties and finally fell in love with one. The home is a foreclosure owned by Wells Fargo.

Our realtor told us that we were required to obtain a mandatory pre-approval directly from Wells Fargo before we could even make an offer on the home.

We already have a letter of pre-approval from our lender, so it doesn't make sense that they would require a seperate pre-approval showing that we can, in fact, obtain financing so we are not wasting their time with our offer. Is this common practice? What is the purpose?

[FlyingRon]

A seller can make what ever conditions they want on acceptance. If they want you to have demonstrated that you can get financing to THEIR standards (though you are not obligated to actually finance through them). Mortgage "preapprovals" aren't generally considered to be worth much.

[HomeGuru]

Originally Posted by Susan1

What is the name of your state (only U.S. law)? NH

We are looking to buy our first home. We have chosen a buyer's agent and obtained pre-approval for a FHA loan from our lender. We have viewed many properties and finally fell in love with one. The home is a foreclosure owned by Wells Fargo.

Our realtor told us that we were required to obtain a mandatory pre-approval directly from Wells Fargo before we could even make an offer on the home.

We already have a letter of pre-approval from our lender, so it doesn't make sense that they would require a seperate pre-approval showing that we can, in fact, obtain financing so we are not wasting their time with our offer. Is this common practice? What is the purpose?

**A: I don't see what the problem is. If you want the house, get the approval.

[Susan1]

Originally Posted by HomeGuru

**A: I don't see what the problem is. If you want the house, get the approval.

My concern is having too many inquiries on my credit report, lowering my credit score unneccesarily. It has been almost a month since our lender offered us a pre-approval so I didn't think the credit bureaus would "lump the inquiries together" since they are being made so far apart.

But you're right, we want the house so we did the pre-approval this morning.