Hi Swilliams,

As the others have said, it's not a law to have a pre-approval, but everyone should get one upfront so they know what they can afford when looking for a home. Once you find the home and make an offer, the seller knows he is working with someone who can afford the home and hopefully get a mortgage.

From a realtor's perspective, when you take someone out touring homes, you want to know that you are working with someone who is serious and can get a mortgage.

Great question and call me if I can help with any of your real estate needs.

No it is not Delaware LAW that an agent must have a loan pre-appoval letter before presenting an offer to purchase. It is, however, part of the Delaware Agreement of Sale that you have a letter from a lender indicating that you qualify and that a credit check has been done. As an added note, by no means would you want NOT to have a pre-approval letter before looking for homes let alone making an offer. You as a buyer are confident you can afford this house (in the eyes of the lender), your realtor knows you are able to buy, and the seller is confident that you are capable and qualified to purchase. Hope this helps

SWilliams
That is a great question. There is currently no law that states that you must provide a preapproval letter to the seller or seller's agent in order to submit an offer to purchase. It is customary, though, in Delaware that a mortgage preapproval letter or proof of funds (for cash buyers) is submitted with the agreement of sale. Most sellers and agents will not accept an offer without a letter of preapproval or at least will not pend a sale until a lender provides evidence that a loan is obtainable by the purchaser or that the buyer has the cash to pay for the house. If you need assistance in finding the right lender ask your Realtor for advise. If you are not working with a Realtor, feel free to contact me and I can let you know with whom I have had successes. I hope that this helps. Have a great day...............................................chris