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Me to Joe the Lender: "They want me to show them homes in the $450,000--$500,000 range. Legit, or am I wasting my time?"
Joe the Lender to Me: Various possibilities... "Try to stay below $460,000--$465,000." Or, "I can't confirm any income." Or, "You will be Okay."
I don't need to hear that they have no debt, make combined $225,000/year, and Dad is kicking in 50 grand. Immaterial details to me, as long as they have made a lending partner that will get them organized for closing.
I don't want to know their top end or details, unless they are asking to spend my time seeing stuff that significantly exceeds their realistic top end.
Seems fair to me.
Exactly. Some people here are making this into a heck of a lot bigger deal than it is.
So am I to understand that all the agents posting here sit down with their prospective buyers, go over all their finances, go over all their bills, go over their monthly revolving debt, discuss their employment history and stability, check their FICO scores, discuss retirement plans and future goals, discuss lifestyle choices, and then decide together what price range they will be looking at based on their overall fiscal health?
Or do they take some random piece of paper as 'good enough' and trot out to look at houses?
Because if your argument is that you don't want to waste your time, it seems like you'd go to the trouble of doing all the above and really pry to get the real truth.
Good grief, no.
A wise realtor gets the buyer to discuss their financial particulars with a lending institution before showing the very first house. Sauvy buyers have already gone ahead and done this on their own and just give the realtor the name of their lender.
The realtor doesn't need to know the personal details, only that the lending institution confirms that they will be lending up to a certain amount.
WHY would a realtor want to waste any time showing a buyer homes that are say worth $350,000 when the the buyers lender will only lend them up to $175,000? (unless of course it can be confirmed that the buyer has more cash on hand they intend to use).
We've been looking for houses (casually) since last September. We have a VERY narrow area of interest, and don't need to settle for something we don't love.
We have never done a pre-approval, as we don't want to incur a credit ding, and may or may not find a house within the time allowed without having to renew the thing.
We do have a prequal letter from our CU. I've shared that with our realtor. They know how much we can buy based on solely one income, and on combined incomes. They also know we plan on using one income because that's what we prefer. They also know we would use both for the right house.
That gives us a VERY wide window. VERY.
I've never had problems with them trying to push us to see any property that was more than 10% over the dollar amount that we've set as our higher-end target.
Truthfully, they already know our area, and that I'm more likely to notice a house and inquire on it before they have time to find me another house to see.
Works for us.
If we were dishonest, we could've gotten a letter saying pretty much anything, as you know.
A pre-qual letter requires no income verification.
Me to Joe the Lender: "They want me to show them homes in the $450,000--$500,000 range. Legit, or am I wasting my time?"
Joe the Lender to Me: Various possibilities... "Try to stay below $460,000--$465,000." Or, "I can't confirm any income." Or, "You will be Okay."
I don't need to hear that they have no debt, make combined $225,000/year, and Dad is kicking in 50 grand. Immaterial details to me, as long as they have made a lending partner that will get them organized for closing.
I don't want to know their top end or details, unless they are asking to spend my time seeing stuff that significantly exceeds their realistic top end.
Seems fair to me.
Mike - Who is Joe the Lender and what is his relationship to you? From experience, I intentionally don't work with a new to me agent's "business partners" - their recommended mortgage broker, their recommended home inspector, etc. So I just don't see how you get an answer beyond "I can't confirm any income" - heck, even beyond income I don't give my SSN to any Joe who wants it. So no clue how you'll be confirming anything.
I think what we have here is agents continuing to talk in terms of that perfect storm scenario where they are working with a long time trusted confidante client. Someone they've closed property with before... Which in the big picture is a tiny subset of the overall people who are walking through a house.
Me to Joe the Lender: "They want me to show them homes in the $450,000--$500,000 range. Legit, or am I wasting my time?"
Joe the Lender to Me: Various possibilities... "Try to stay below $460,000--$465,000." Or, "I can't confirm any income." Or, "You will be Okay."
I don't need to hear that they have no debt, make combined $225,000/year, and Dad is kicking in 50 grand. Immaterial details to me, as long as they have made a lending partner that will get them organized for closing.
I don't want to know their top end or details, unless they are asking to spend my time seeing stuff that significantly exceeds their realistic top end.
Seems fair to me.
So you talk directly with your client's lender? If my agent did that they would be fired immediately if they didn't ask me for permission first. And no chance in hell I would continue to use a lender who is giving out information about me to anyone.
Mike - Who is Joe the Lender and what is his relationship to you? From experience, I intentionally don't work with a new to me agent's "business partners" - their recommended mortgage broker, their recommended home inspector, etc. So I just don't see how you get an answer beyond "I can't confirm any income" - heck, even beyond income I don't give my SSN to any Joe who wants it. So no clue how you'll be confirming anything.
I think what we have here is agents continuing to talk in terms of that perfect storm scenario where they are working with a long time trusted confidante client. Someone they've closed property with before... Which in the big picture is a tiny subset of the overall people who are walking through a house.
Mikey,
I possibly have no relationship with Joe the Lender. He is YOUR chosen lender. If he is unable to tell me that my use of time is valid showing a $450,000--$500,000 home after you have chosen him, then what compelling reason would I have to consider being the only party with a serious approach to the relationship?
Now I also know a couple of lenders whose names would not get me out of bed to show you anything. Please don't tell me you are working with one of them and expect great applause.
Your best defense against what you see as objectionable intrusiveness is to pay an agent a healthy retainer that will compensate them if it turns out you are BSing about your ability or desire.
Other than that, with no established financial gravitas, it is not unfair for any agent to assume you may well be looking for a free taxi tour and/or a free key jockey, and a free use of their time.
Now agents may decide they are a judge of character and roll the dice that you have a nickel or two to play with. However, anyone who has been an agent for more than 6 months can tell you about the folks they met who value their "Privacy," meaning they cannot possibly buy a home but just want to steal time on a fantasy.
So you talk directly with your client's lender? If my agent did that they would be fired immediately if they didn't ask me for permission first. And no chance in hell I would continue to use a lender who is giving out information about me to anyone.
Read my answer to Mikey about people who like to steal agents' time on fantasy, and sometimes on deceptiveness.
Of course you want to allow your lender to tell me that you have ability to buy what you want to see.
That is a no-brainer. In absence of that confirmation, what would convince a normally functioning cognitive individual to run around with you?
Are you buying lunch?
Read my answer to Mikey about people who like to steal agents' time on fantasy, and sometimes on deceptiveness.
Of course you want to allow your lender to tell me that you have ability to buy what you want to see.
That is a no-brainer. In absence of that confirmation, what would convince a normally functioning cognitive individual to run around with you?
Are you buying lunch?
That would happen in the form of a prequal letter. If that isn't sufficient for you then we wouldn't be working together.
As for your question, ask your fellow realtors. I've had plenty of them work with me without talking with my lender.
I possibly have no relationship with Joe the Lender. He is YOUR chosen lender. If he is unable to tell me that my use of time is valid showing a $450,000--$500,000 home after you have chosen him, then what compelling reason would I have to consider being the only party with a serious approach to the relationship?
Now I also know a couple of lenders whose names would not get me out of bed to show you anything. Please don't tell me you are working with one of them and expect great applause.
Your best defense against what you see as objectionable intrusiveness is to pay an agent a healthy retainer that will compensate them if it turns out you are BSing about your ability or desire.
Other than that, with no established financial gravitas, it is not unfair for any agent to assume you may well be looking for a free taxi tour and/or a free key jockey, and a free use of their time.
Now agents may decide they are a judge of character and roll the dice that you have a nickel or two to play with. However, anyone who has been an agent for more than 6 months can tell you about the folks they met who value their "Privacy," meaning they cannot possibly buy a home but just want to steal time on a fantasy.
I really am not understanding this...
Why am I working out details with a lender before I offer on a specific house? I've never done that. I've never been turned down to see houses. I've spent months looking at homes before I bought previously. Heck, I've been looking for the past year practically... I'm relating my experience from NY and NC. I looked extensively seeing many, many houses in NY before I decided to relocate to NC where I made several trips to see many, many houses.
I've had agents lined up willing to work with me as "relocation specialists" offering kits, packages, etc - I've ridden around with these people looking at properties. What was I missing? Did I just find the handful of licensed agents who don't require "financial proof"?
After getting so burned in this most recent real estate debacle, I wouldn't let anyone who wasn't pre-APPROVED step foot inside my house.
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