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Got confused last time negotiating with a seller (our offer did not get accepted anyway):
1. No home warranty. Is this normal for a resale house? House itself was upgraded throughout within past 3 yrs.
2. Use direct lender for mortgage. What has it to do with the seller anyway? I thought for a buyer, using broker might incur slightly higher interest rate (broker profits from the difference between what he gets and what he gives me?). But does it make any difference to the seller? Previous buyer actually did not get the loan application approved and that's why it was relisted after 3 months.
> No home warranty. Is this normal for a resale house? House itself was upgraded throughout within past 3 yrs.
I will comment on this one at least. In my personal opinion a home warranty is worth very little except perhaps as a sales tool.
I HAD a home warranty on a recent purchase, air conditioner failed on the weekend, called the insurance company, couldn't get them, saw that I would have to use THEIR choice of repairman anyway, so paid for the repair myself, with my choice of local repair person who came immediately.
The money is better spent on a good inspection, and a cash reserve for the inevitable repairs.
It's very common for the seller not to pay for a home warranty - which is usually useless anyway.
As for the financing, I have no idea where that came from. As long as you can prove that you are financially able to purchase the house, I don't see what the problem is.
Got confused last time negotiating with a seller (our offer did not get accepted anyway):
1. No home warranty. Is this normal for a resale house? House itself was upgraded throughout within past 3 yrs.
2. Use direct lender for mortgage. What has it to do with the seller anyway? I thought for a buyer, using broker might incur slightly higher interest rate (broker profits from the difference between what he gets and what he gives me?). But does it make any difference to the seller? Previous buyer actually did not get the loan application approved and that's why it was relisted after 3 months.
Thanks a lot.
Home warranty is negotiable. Sometimes it's offered up front by the seller as an incentive.
Buyer is free to use their own lender. It is not a negotiable item. You use whomever you choose. However, some agents will require that the buyer be "pre-qualified" with their "favorite" lender because they seem to feel that their lender is better than all others.
In my opinion, when a seller allows a listing agent to require that a buyer be pre-qualified with the listing agents favorite lender, they are hurting the seller.
Having to be pre-qualified with a second lender is an imposition on the buyers time; it involves having to listen to an unwanted sales pitch by this lender; and it can add a hit to the buyers credit report if the first credit check is over 30 days old. Consequently, many buyers will bypass a home where that has that onerous requirement.
I also see a lot of flippers requiring pre-approval with a mortgage company of their choice. I think there is either financial benefit (they are affiliates) or they just feel more comfortable that the sale will go through with a known pre-qual.
And yes, there are plenty of buyers that have been pre qualified and then couldn't get a loan b/c the broker/lender didn't ask all the right questions and really check out the buyer. I'm not sure why they feel a direct lender would do a better job at that...I haven't seen that to be the case.
Home warranty is negotiable. Sometimes it's offered up front by the seller as an incentive.
Buyer is free to use their own lender. It is not a negotiable item. You use whomever you choose. However, some agents will require that the buyer be "pre-qualified" with their "favorite" lender because they seem to feel that their lender is better than all others.
In my opinion, when a seller allows a listing agent to require that a buyer be pre-qualified with the listing agents favorite lender, they are hurting the seller.
Having to be pre-qualified with a second lender is an imposition on the buyers time; it involves having to listen to an unwanted sales pitch by this lender; and it can add a hit to the buyers credit report if the first credit check is over 30 days old. Consequently, many buyers will bypass a home where that has that onerous requirement.
An agent can't require you to do anything. They can ask and that is all. Agents often use the verbal statement that buyer is required to (insert BS here). A seller requiring you to use a certain lender is open to all sorts of consequences and depending on buyer, it could become very nasty for the seller and seller agent.
A seller though, can require the buyer get pre-qualified through a specific lender, as in a short sale or foreclosure sale. There can however; be no requirement to use a specific lender. If a seller or agent requires you to use a specific lender, they've crossed a serious line and you have lots of recourse and none of them will be pleasant for the seller agent.
I think the opposite is true regarding lenders. Brokers often get you the best deal - the banks give you what they have and that's about it. (around here anyhow) I've never heard of a seller specify "direct lender" however I have often seen listings that say "cash, conventional only - no VA or FHA". That is understandable since the latter 2 loans carry a lot more headache for everyone and tend to take much longer to fund and close. I sold one of my houses once to an FHA buyer and swore I'd never do it again!
REOs and SS listings often state "buyer must submit pre- qualify with ABC Bank or offer will not be considered" but then you're free to actually get your financing anywhere you please. They want to make sure you are qualified under their criteria before spending any time on your offer.
Quote:
Originally Posted by Captain Bill Home warranty is negotiable. Sometimes it's offered up front by the seller as an incentive.
Buyer is free to use their own lender. It is not a negotiable item. You use whomever you choose. However, some agents will require that the buyer be "pre-qualified" with their "favorite" lender because they seem to feel that their lender is better than all others.
In my opinion, when a seller allows a listing agent to require that a buyer be pre-qualified with the listing agents favorite lender, they are hurting the seller.
Having to be pre-qualified with a second lender is an imposition on the buyers time; it involves having to listen to an unwanted sales pitch by this lender; and it can add a hit to the buyers credit report if the first credit check is over 30 days old. Consequently, many buyers will bypass a home where that has that onerous requirement.
Quote:
Originally Posted by Mack Knife
An agent can't require you to do anything. They can ask and that is all. Agents often use the verbal statement that buyer is required to (insert BS here). A seller requiring you to use a certain lender is open to all sorts of consequences and depending on buyer, it could become very nasty for the seller and seller agent.
A seller though, can require the buyer get pre-qualified through a specific lender, as in a short sale or foreclosure sale. There can however; be no requirement to use a specific lender. If a seller or agent requires you to use a specific lender, they've crossed a serious line and you have lots of recourse and none of them will be pleasant for the seller agent.
Seems like you're repeating what I said with different words. However, I never said that a seller can require a buyer to use a certain lender for the loan.
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