Just recently, I wrote an offer on a bank owned property in the Big Bear valley for a client of mine. When I first me these clients, they were already pre-approved and ready to move forward once they found the home that they wanted. Well, it didn't take long for my clients to find the perfect cabin and we sat down to write an offer.  One of the requirements from the bank that was offering the property for sale was that the potential buyer needed to be pre-qualified through the listing bank. My clients were not very happy with the idea of having to go through the pre-qualification process once again, especially as they were pre-approved for far more than they were looking to spend.  Can the bank really require you to pre-qualify with them before they'll look at the offer?  The answer is Yes!

I've been asked by a number of people if the banks can make you pre-qualify through their lender, even when you plan to use your lender of choice. The answer to this question is simply yes.  Not only can the bank ask you to pre-qualify with their lenders, a lot of them won't look at your offer unless you are pre qualified with them.  If you want to buy a bank owned home, you're going to learn very quickly that the bank is in the driver seat.  If you want to buy a bank owned property, be prepared to jump through hoops that you may feel are a little odd.