What does “subject to bank approval” mean in a real estate listing?
November 29, 2008
I doubt that means approval by the buyer 's bank, what are they? Some buyers are buying the cash and have no bank. Alternatively, for buyers who must obtain a mortgage, obviously they need a bank 'approval if there' s no reason so that? a list of real estate than say, what are they? that statement would apply to everyone who 's purchase of a mortgage. I think the statement refers to sellers' bank s. But I can 't calculates the outside perch? the seller 's bank is expected to approve a sale. Does anyone know what 's the rational explanation for a statement Gradica this? Thank you. Thanks for the suggestions, but it seems to me unlikely that this expression refers to the bank of the buyer. ? always true that a buyer gets a mortgage that requires the approval of the bank. Why? a list or a waste of advertising? the words highlighting something obvious. This term does not appear in any list, only a limited number. I think it has some significance regarding the specific situation of the seller. The answers here which suggest that this is a situation of pre-foreclosure for the buyer seem pi? likely me.
Erik
Posted by admin under blog | Comments (6)
Bank approval is for the buyer. Not everyone carries $250,000 in their pocket. Even if they did it would be stupid not to get a mortgage so they can take a tax deduction.
Comment by bartliddy — November 30, 2008 @ 2:01 am
This means that the property is either pre-foreclosure short sale, or already foreclosed upon – and the lender (bank) holding the unpaid mortgage needs to approve the buyer’s offer.
Comment by venicefloridarealtor — November 30, 2008 @ 11:45 pm
It is absolutely for the buyers interest. Subject to bank approval is just that, the offer to purchase is subject to the buyer being able to obtain a bank loan. You are right, some people do pay cash, and that statement would not apply to them, but most require a mortgage. So the purchase would be subject to bank approval.
Comment by maplewoodjoe — December 3, 2008 @ 3:16 am
This means that the sales contract is conditional on the buyer being able to obtain a loan. Most realtors ask for a preapproval letter to go with the file and most contracts give a time frame for the buyer to provide evidence that they can obtain financing. There are also boxes on the contract to indicate what type of loan they are getting.
Comment by yourmtgbanker — December 3, 2008 @ 9:06 am
Subject to bank approval means just what it says. The bank has to approve you for a loan before you can make a bid and have it accepted. You must be pre-approved for the loan amount.
Comment by Vivian B — December 6, 2008 @ 6:18 pm
The property that is being sold is pre-forclosure/forclosure and the property is probably being marketed at a lower price than what is owed, therefore the bank or lender of the Seller has to approve of the offer.
Comment by ROCKY — December 8, 2008 @ 9:25 am