Pre-Approval letter needed?

[Dave T]

BrianA06,

The answer is (so often), IT DEPENDS.

If you are making an offer on a FSBO property, then a pre-approval letter may not be needed, nor even suggested by the seller.

If you are making an offer on an REO, then the bank will not even consider your offer without some proof of funds or a pre-approval letter.

If you are making an offer on an MLS listed property (other than an REO), then the real estate agent is the one most likely to request a pre-approval letter.  Agents want a commission.  They will be more aggresive in presenting your offer if the agent is confident that you have the ability to close the deal.

If you have a track record with an agent, then you may never be asked for a pre-approval letter unless the buyer requests one.  If you are new to the agent, it does not hurt to have some evidence that you are a serious buyer.