Profile picture for user17933555

Offering on a home in DC/greater DC/MD "Financial Information Sheet."???

Our Realtor(s) asked us to complete a "Financial Information Sheet."  The form asks details employment, salary, accounts, stocks/bonds...

The form reads "This information is presented with the understanding that it may be used as a basis for the acceptance of a contract by the seller. The undersigned hereby authorizes the agent to disclose to the SELLER, SELLERS AGENT, DUAL AGENTS, INTRA-COMPANY AGENTS, COOPERATING AGENTS and Lender ALL OR ANY PORTION OF THE INFORMATION CONTAINED IN THIS FINANCIAL INFORMATION SHEET" 

Why would I provided this amount of personal information to strangers?

  • January 06 2014 - Washington
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Answers (7)

Piggy backing on what everyone else has said, I can say from a listing agent standpoint, I rarely see offers come in with a financial information sheet on each buyer.

The typical offer will have a POF document from the lender, a copy of the EMD check and the sales contract documents.

If you decide you want to include the financial information sheet, it is solely up to you, but the typical seller will ratify if you've provided the documents I listed above.

However, the higher priced the property, meaning well over $700k in the DC area, the seller may be more inclined to request or demand a financial information sheet. However, even at that price range I've still had sellers ratify without the financial information sheet.
  • February 12 2014
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Profile picture for Djana Morris
As a realtor who works with both buyers and sellers in the Washington, DC metro area, I'd like to give you another perspective.

When a home seller accepts an offer, he/she takes their property off the market for at least 30 days and takes the risk that the buyer will ultimately qualify for a mortgage.  As a listing agent, I want to mitigate that risk as much as possible.  A pre-qualification letter from a lender is not a full-approval and does not guarantee that the buyer will be approved for the loan.  In requesting a financial information sheet, a seller just wants proof of financial wherewithal.  Bank and investment account numbers are not requested nor wanted.  With a cash offer, proof of funds is sufficient and a financial information sheet is not necessary.

If you were selling your home, wouldn't you want to be confident that the buyer of your home could perform.  In a competitive situation, providing a financial information sheet can make the difference between having your offer accepted or rejected by the seller.
  • January 24 2014
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  • January 23 2014
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Profile picture for hpvanc
I would provide proof of funds to close, and nothing more. The seller nor agents need to know you can easily afford more, or that you could come up with cash to cover the difference between contract price and appraisal in the event it doesn't close.
  • January 08 2014
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Profile picture for wetdawgs
Also a consumer:  my opinion is that the only financial information the listing or buyer's agent needs to know is whether or not I have the resources to purchase the house.   They do not need to know my entire portfolio, they have no need to know my overall financial picture.    This is my lender's responsibility.   If the seller/listing agent don't wish to agree with the lender's recommendation, then I'm not interested in the property.

The last home we purchased was all cash.   We provided a copy of the latest bank statement showing the cash in the one account.   End of story.    They did not see our stock accounts, other bank accounts, 401ks, IRAs, gold nugget inventory or anything else.


  • January 08 2014
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Profile picture for SoCal Engr
a consumer perspective...

No. Way. Period.

Neither the REA (yours nor theirs) or seller need access to that information. This is information you provide to a mortgage professional, who can then write a letter advising all three (your REA, the seller's REA, and the seller) of your qualification to purchase at the specified price.

The only possible exception that I can think of is if you are making an all-cash offer, and the seller would then want to see proof of funds. Even then, other than name, I would redact all information identifying the account (other than institution name, my name, amount, and date of statement).

As to "Why would I provided [sic] this amount of personal information to strangers?" Because your life is entirely too peaceful and the thought of tempting fate with a good case of identity theft puts a smile on your face.

BTW...

I don't care what "form" a REA has created for the purpose of getting this information from you. It's none of their business, although I do feel it is appropriate to ask for a pre-qual/pre-approval from a lender.

Good luck...
  • January 08 2014
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Hi there,

When I'm on the listing end of a sale, I often request that buyers agents submit this form in order for myself and my sellers to get an overall financial picture of the buyer trying to purchase the home.

Do they have sufficient funds to make the full downpayment at settlement of their pre-approved loan? Does their current savings and salary support that they can afford to make their mortgage on this home and move towards settlement with confidence?

As licensed real estate professionals, it's our responsibility to keep this information confidential and close. While it is obviously your choice to opt out of disclosing this information, it can often bolster your offer's standing and help you edge out other buyers in this competitive market.
  • January 08 2014
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