Home Buying in Lake Elsinore>Question Details

Teresa, Home Buyer in 94501

I'm approved for FHA loan for 213K. I live in the OC but want a nice house. Considering a move to Lake

Asked by Teresa, 94501 Tue Jun 24, 2008

Elsinore but my agent is fighting me but it's my choice. Considering letting her go but she referred me to a broker who claims I'm preapproved so I feel obligated. Can I dump her and keep the broker?

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Teresa:

You have two things going here.

1. You have an agent, who works for you, telling you how to go about your business. You are the buyer and in my office that means your agent is supposed to help you make an informed decision and then negotiate the best deal for you on the home you choose, not force you into buying what they want to sell. Would you walk onto a car lot with a pre-approved loan intending to buy a brand new sports car and let the sales person force you into buying a 30 year old Volkswagon Bug? If this is not how you would buy a car worth $30,000, then don't buy a house worth over $200,000 this way.

2. You claim you have a pre-approval for an FHA loan. What information did you have to provide for the "pre-approval"? Did you get a good faith estimate for the loan? Have you seen the conditions of the "pre-approval"? What the loan broker probably did was run your information through the FHA DU (Desktop underwriting) system. This system looks at your debts and your income and spits out a DU approval if you are within the parameters set by the computer. However, it is my understanding (and I am not a lender) that you do not get an FHA case number until you identify a property, and without an FHA case number you really don't have even the first step for a loan. And unfortunately, that is only the first step of the loan process. Much follows after that. So, it might not even be necessary to keep the loan broker if you feel more comfortable making a clean break. There is no obligation, unless you signed some form of contract. Loan officers hand out many pre-quals and pre-approvals for each loan they actually write. And you might find that you can get as good, or even a better deal by working with a direct lender instead of a broker. I would check out all my options if I were you.

It is important that you work with professionals who are helping you find what you want. If you feel that is not the case with your agent, then you need to find someone who will. You did not mention if you are first time homebuyer (this is my area of specialization), but even as a 2nd or 3rd timer, in this market you need an advocate and someone who will explain the REO or short sale process to you thoroughly and who will help you identify all the programs that are available to help you buy your new home. If you would like to discuss your choices further, I would be happy to speak with you. You can contact me through my profile.

Follow your heart and buy the home you want, and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Wed Jun 25, 2008
You are ALWAYS free to chose a real estate sales agent and a lender who you know, like, and trust. The only time it becomes an issue is once you've written an offer. There are so many good people who can represent you that you should be completely comfortable with your representation.

Be careful though if you write an offer with one sales agent but saw the property with another. That's messy and unprofessional. In that situation, the two agents would battle it out over who was the "procuring cause."

I encourage you to interview agents and lenders until you find one of each that you can work with. Your agent should help you see things you otherwise wouldn't see while never leaving your money on the table. Your lender should be able to explain things so easily that she could do so with a crayon.

Thanks for the opportunity to answer your question. If you need anything else you can reach be directly at 951-571-9229 or sean.giorgianni@gmail.com
Web Reference: http://frclsrtv.com
1 vote Thank Flag Link Tue Jun 24, 2008
Buying a home should be exciting and fun! It is a great investment and an exciting change in your life! Generally speaking, your agent should have very little to say in your preference of communities. I suspect your agent does not want to be bothered commuting “out” to Lake Elsinore. Perhaps, she is intimidated, because her expertise is in Orange County, and she knows very little about the community of Lake Elsinore. Or with the lower prices of homes in LE, perhaps the commissions are somewhat small for her efforts. Whatever her reason, the main consideration is: did you sign a Buyer / Broker agreement? (We use CAR form BRE). If you did sign an agreement, look at what the agreement covers, on page one and two in particular. If you have not signed contract with the agent, you are free to do as you please.
Also let me say: it is important to use a local Realtor! I happen to be a Realtor located in Lake Elsinore, and I can tell you that I spend some of every day, studying the local market, or previewing homes, and I have valuable knowledge in market trends, schools, shopping, city planning, and so on. Let me put this knowledge to work for you! Give me a call, and let me explain what I can do for you!
0 votes Thank Flag Link Mon Jul 21, 2008
No one is obligated to use anyone in this business. You earn everything based on your ability to perform. This business is all about relationships. Work with the people you are most comfortable with. The buying process should be exciting. Call or email with any questions. You can use my website to get to know more about me and my contact info.
Web Reference: http://www.robertfirst.com
0 votes Thank Flag Link Wed Jul 2, 2008
Hi there Teresa, if you have a written buyer broker agreement you might want to cancel this in writing to keep you out of sticky mess later if you choose to work with another agent.
Buy yes you have freedom to choose who you work with so you should talk to Realtors and choose one that you feel comfortable with and who can help you secure a property with favourable terms for you the buyer. When working with a lender make sure you obtain a pre approval letter, better than verbal.

If you need anything else please fell free to call me on (714) 552-6817 or my e-mail is
michael-barron@sbcglobal.net

Kind Regards
Michael Barron
Realtor/MBA
First Team Real Estate
0 votes Thank Flag Link Tue Jun 24, 2008
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