What precautions you must take while getting a lender letter?
Many a time you may like a property so much so that you want to buy it but the problem is the finance. There are two problems that the buyers face while choosing to buy a property
- The seller want to sell off their property right away and the buyer cannot arrange for the finance instantly because loan sanctioning takes a lot of time
- There are many others who would like to buy the same property and can afford instant money. This may lead to the opportunity getting out of hands.
This problem can be solved by getting a lender letter from the bank or anyone who is ready to lend you the money in future if you close the deal.
What is lender letter?
This is a letter from the party who is ready to lend you the required money if you fulfil the criteria that are required to be fulfilled. This letter is not the approval of loan but a letter that shows that there are higher chances of your loan getting approved depending on the results of further investigations.
One must ensure that your lender letter is issued to you after the required back ground check. This has many advantages
- You will become sure of the loan approval should you pick a property to buy
- If your lender refuses to give you a letter you may try other options as well as lenders
- You will save time when you are closing the deal