5. The Bank Sets the Rules
Making an offer on a bank owned property requires that you submit "proof of funds" for cash offers, or a "pre qualification" letter from either the bank specified lender or your lender of choice. Additionally, the bank can require that you be pre-qualified by their specific lender. That does not mean you have to borrow money from them, it just means that they want to be sure that you have the means with which to purchase the property.
As an example, if Wells Fargo or Bank of America holds the property, then they may want a pre-qualification letter from a Wells Fargo or Bank of America lender, specified either in the listing or in the bank contract. This is done for two reasons: 1. They trust their own lending guidelines; 2. They want the opportunity to generate more business. While the seller(the bank) cannot legally insist that the buyer use a particular lender, they still want an opportunity to compete for the business.
Always keep in mind that the bank sets the rules. If you would prefer to kick sand in their sandbox, rather than play within it, you run a higher risk of your offer not being considered or just simply rejected.
If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA. Contact me at (678) 252-2959 or AndreAllen@kw.com.
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