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Answers (12)
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
It is frustrating for our buyers, especially in North Carolina where our buyers are allowed to choose lenders etc. However after working with several bank owned properties, I do understand where the banks are coming from .....a lot of preapproval letters are nothing more than prequalified letters, except the alphabet is changed.Shouldnt happen, but it does. Banks want to know they are not wasting their time.
Look, its a game of rules....if you want to play in the game, play by the rules....simple
Look, its a game of rules....if you want to play in the game, play by the rules....simple
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
Working with investors, not only do I get a pre-approval, I want to see a bank statement showing the cash funds for the downpayment. How about the ledners that are doing a credit check on application and a credit check a few days before closing. Now, talk about frustrating.
- Brandy Garner, "Brandy Garner"
- Contributions:2
I totally agree! It's very frustrating to go through the process of getting your buyers approved for financing through a reputable lender only to find a great home and have to go through it all over again. I guess I can understand where they are coming from because alot of lenders just ask the buyer a few questions and spit out an "pre-qualified" letter "based on the information that was verbally provided". All of this must be physically confirmed by the lender before they officially can be considered approved. If the buyers are serious and are willing to complete the entire APPROVAL process prior to looking for homes, I see no reason why they would need to delay an offer just to have to go through the process again with the selling bank. It's just not necessary for these types of buyers.
- Njeri Clark, "njericlark"
- Contributions:1
I totally agree. I am VERY frustrated with the practices of listing agents. It is unlawful and unethical in my opinion. First of all, who are listing agents to determine if one mortgage bank is more reputable than another. They are not regulatory institutions and do not have the authority. If my buyer is pre approved by a reputable, licensed company and she/he has a signed letter verifying this, then that is all that should be required. For our industry to accept otherwise opens the door to discrimination, bribery, etc. It is crucial that this practice not be tolerated.
I had a buyer who made an offer on a property in Maryland. I was told by the listing agent #1. She did not like the source of funds. She said she didn't believe that the down pmt program was reputable. This could be discriminatory. That agent may not want to work with certain groups who need assistance or the seller may not want certain "groups" to buy in that particular area. The program was in fact reputable and my client used its funds to buy another property. #2. The agent said that my buyer had to qualify with her lender. My client's credit score was only 609. With the list agent's lender, the score had to be 620. My buyer's lender has programs that require scores of 580 and above. So, what was the point. If these practices continue, smaller banks will be put out of business and practices we don't like, such as "discrimination" and "kickbacks" will dominate our industry. This MUST come to an end. If anyone knows how I can help to end these practices, please let me know.
I had a buyer who made an offer on a property in Maryland. I was told by the listing agent #1. She did not like the source of funds. She said she didn't believe that the down pmt program was reputable. This could be discriminatory. That agent may not want to work with certain groups who need assistance or the seller may not want certain "groups" to buy in that particular area. The program was in fact reputable and my client used its funds to buy another property. #2. The agent said that my buyer had to qualify with her lender. My client's credit score was only 609. With the list agent's lender, the score had to be 620. My buyer's lender has programs that require scores of 580 and above. So, what was the point. If these practices continue, smaller banks will be put out of business and practices we don't like, such as "discrimination" and "kickbacks" will dominate our industry. This MUST come to an end. If anyone knows how I can help to end these practices, please let me know.
- Darrell Self, "Darrell Self"
- Contributions:349
Amanda the bank owns the property and they want to be sure that the potential buyer will qualify as there are so many preapprovals that turn out not to be the real thing.
- Gary Blankenship, "Gary_blankenship"
- Contributions:6
Hi Amanda,
It can be pretty annoying to have to get a qualified buyer qualified by another lender if you have to write offers on 2 or 3 properties. I have found out that if you will have your buyer pre approved by a major bank such as Wells Fargo, Bank of America the other agent will in a lot of cases just go ahead and submit the offer. If he/she backs up I am fortunate to use the best loan officer in the world, my wife she works for Bank of America. Of course I have all of my buyers qualify through her. If the listing agent insists that the buyer must qualify through the lender of their choice she pick up the phone and call that loan officer. She has all the information on on the buyer and 99% of the time she is able to get the loan officer to give her their approval. Your loan officer should be doing the same for you if not give Katherine a call at 760-731-9200 or toll free 800-760-7713 or email katherine.blankenship@bankofamerica.com.
With kindess regards its a great life.
Gary
It can be pretty annoying to have to get a qualified buyer qualified by another lender if you have to write offers on 2 or 3 properties. I have found out that if you will have your buyer pre approved by a major bank such as Wells Fargo, Bank of America the other agent will in a lot of cases just go ahead and submit the offer. If he/she backs up I am fortunate to use the best loan officer in the world, my wife she works for Bank of America. Of course I have all of my buyers qualify through her. If the listing agent insists that the buyer must qualify through the lender of their choice she pick up the phone and call that loan officer. She has all the information on on the buyer and 99% of the time she is able to get the loan officer to give her their approval. Your loan officer should be doing the same for you if not give Katherine a call at 760-731-9200 or toll free 800-760-7713 or email katherine.blankenship@bankofamerica.com.
With kindess regards its a great life.
Gary
- shasta_steve
- Contributions:448
In my opinion it has a lot to do with trying to get business to your buddy. When I bought my last house I had to be pre-approved by a specific Wells Gargo lender but the funny thing was the foreclosure was BofA.
After my offer was accepted I went with my original lender. I soon got a phone call from the Wells Fargo lender who told me I wasted his time and suggested that they would kill the deal. A couple of phone calls later and he backed off but I pretty much got from him that he handled the loans for his friend's listings.
After my offer was accepted I went with my original lender. I soon got a phone call from the Wells Fargo lender who told me I wasted his time and suggested that they would kill the deal. A couple of phone calls later and he backed off but I pretty much got from him that he handled the loans for his friend's listings.
- Michael Emery, "MikeEmery"
- Contributions:7297
They are just making sure your buyer isn't using the "Bank of Bob".
I closed on a foreclosure sale yesterday where Wells Fargo required any buyers to pre-approve with them. We submitted the offer anyways - with only my buyers lender and they didn't say a thing.
If they had insisted, we could've had him approved, but he would've still used his bank.
I closed on a foreclosure sale yesterday where Wells Fargo required any buyers to pre-approve with them. We submitted the offer anyways - with only my buyers lender and they didn't say a thing.
If they had insisted, we could've had him approved, but he would've still used his bank.
- B Mike West
- Contributions:240
Unfortunately, pre-approval letters are not consistently reliable. Some lenders and loan officers take the issue seriously and can be depended on. Others not so.
From the lender or loan servicer's point of view, the do not want to waste their time on offers from buyers who are really not qualified. So they make every potential buyer dance the dance. In some cases it is the listing agent who includes this requirement--for the same reason.
Finally, if the lender or loan servicer requires every buyer to perform this task they are going to get a portion of the business as a new loan; it is their form of lead generation.
From the lender or loan servicer's point of view, the do not want to waste their time on offers from buyers who are really not qualified. So they make every potential buyer dance the dance. In some cases it is the listing agent who includes this requirement--for the same reason.
Finally, if the lender or loan servicer requires every buyer to perform this task they are going to get a portion of the business as a new loan; it is their form of lead generation.
- John Stewart, "nwhome.us"
- Contributions:2163
I think you'll find that it is a requirement to get pre-approved, not borrow from them.
This is a backstop in the event that the buyer claims that they were unable to get financing from their own lender. It makes the earnest money a little more difficult to claim if financing "fails".
This is a backstop in the event that the buyer claims that they were unable to get financing from their own lender. It makes the earnest money a little more difficult to claim if financing "fails".
- Sheri Moritz, "SheriMoritz"
- Contributions:269
Exactly what Dan said. They are trying to ensure that the buyer is actually able to close. Most likely the lender of their choice will be able to close them but many banks want to have the added assurance and also the potential to loan on the home. It is still going to be their choice as to who they decide to get their loan from but if they would like to make an offer on a bank owned property that requires that it is going to be hard to get an acceptance without it.
- Dan, "the_country_hick"
- Contributions:4695
There have been several fly by night mortgage companies that died before the deal could go through. This is both an attempt to avoid that problem and to generate some extra income by having that bank do the lending so their loss is minimized IMHO.
How can banks REQUIRE buyers to be pre-approved through THEM if buyer has been approvd w/their lendr
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