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As mentioned... I can see this practice providing low hanging fruit for eager discrimination lawyers... I manage rental property and NEVER require a credit check or proof of funds to look...
Requiring proof of funds isn't inherently discriminatory; the lawyer would need to be able to prove the policy is applied inconsistently.
As mentioned... the few times I have dealt with someone new I had the benefit of an introduction from my hometown broker.
Several in the business have told me they can do a quick search and identify properties owned which I know has happened to me at least once.
When I went back for a second look the Realtor could not have been more accommodating... much more friendly than the first meeting and she mentioned my being active in the Apartment Association and asked if I would be selling any of my apartments... this info did not come from me.
In this day and age of fraud it does make me wonder about those that will furnish personal financial information upon request to strangers.
It's not like you're giving your broker a copy of your savings account statement with full account numbers unredacted.
Quote:
Originally Posted by Ultrarunner
The devil is always in the details... In this day and age of fraud it does make me wonder about those that will furnish personal financial information upon request to strangers.
I don't see a ton of risk in showing my buyer's agent a pre-approval letter from a mortgage broker. If I'm working with an agent looking at $500K houses, it's not like she doesn't already know my name, address, and probably my new address too!
A buyer's realtor is not going to ask for proof of cash or your source of the cash.
Ahem.
Sorry, but that is a blanket statement that is untrue. It may be true of some agents -- but if they do it more than once, they don't tend to last in this business very long.
I'm an agent in an office of almost 300 people. I'm in a group that has close to 1,600 agents. Any newbie agent who took a buyer out without first doing a buyer consultation or verifying source of funds has stories of those kinds of transactions coming back to bite them in the derriere. A buyer's agent learns -- quickly -- to "trust, but verify."
A experienced, knowledgeable and savvy buyer's agent will question - politely but firmly -- your ability to complete the transaction. Even if it's just a quick call to your money manager to confirm liquidity up to $XX amount. If someone is buying a house for $500,000 "cash", it's MY reputation that's at stake when I assure a seller's agent that the buyer is good for it. I don't want to look like a credulous idiot when it turns out that the "cash" is from the sale of a property that hasn't even been listed yet.
And I am amused by all the No agent/only a stupid agent/agent who won't be in business long would show someone a home without seeing all their finances on day one.
Some markets are more forgiving than others. As has been repeated throughout this thread: An agent doesn't care how much money you have or you make. They only care that you have what it takes to complete a transaction. I don't want to see your tax returns. I don't want to see your W-2, I don't give a flip how much Aunt Lucy left you in her will. The ONLY thing I care about is that if I am going to spend hours searching for and showing you homes (on MY dime), you should have the ability to buy it. Many agents rely on "intuition" when it comes to clients. Sometimes it works out. Oftentimes, it doesn't. Unfortunately, there's enough shady people out there that flat-out lie or have underhanded reasons to get into a house to create a certain wariness in agents whose client's have not been referred to them by people that are known to them.
Some markets are more forgiving than others. As has been repeated throughout this thread: An agent doesn't care how much money you have or you make. They only care that you have what it takes to complete a transaction. I don't want to see your tax returns. I don't want to see your W-2, I don't give a flip how much Aunt Lucy left you in her will. The ONLY thing I care about is that if I am going to spend hours searching for and showing you homes (on MY dime), you should have the ability to buy it. Many agents rely on "intuition" when it comes to clients. Sometimes it works out. Oftentimes, it doesn't. Unfortunately, there's enough shady people out there that flat-out lie or have underhanded reasons to get into a house to create a certain wariness in agents whose client's have not been referred to them by people that are known to them.
I agree that there is no absolute on either side of the question. My point was with the ones here who were basically saying that no agent anywhere will ever show a house without verifying a person's finances. And of course, even if their finances are verified, that doesn't mean that they won't run someone around and waste an agent's time and $ and still not buy a home.
I don't see a ton of risk in showing my buyer's agent a pre-approval letter from a mortgage broker. If I'm working with an agent looking at $500K houses, it's not like she doesn't already know my name, address, and probably my new address too!
I've known people to copy a bank statement or brokerage account with nothing redacted...
One of my good friends owns a mortgage business for 30 years... he said if I ever need a letter just let him know and it takes about 5 minutes... asked how can he get one out in 5 minutes and what about risk...
His reply is all letters are dated and if something comes up the industry out is the letter is only valid on date prepared.
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