Home Buying in San Francisco>Question Details

Seanf, Home Buyer in San Francisco, CA

Is it common practice for home sellers to request a buyer be pre-qualified a second time by their own mortgage provider?

Asked by Seanf, San Francisco, CA Mon May 6, 2013

Help the community by answering this question:

Answers

4
Sellers are certainly entitled to a preapproval by a reputable mortgage lender/broker. But other than the developers referenced in the other responses, sellers are not entitled to access my client's credit reports, FICO scores, and financial affairs via their own mortgage lender/broker. I submit offers without agreeing to such a request.
0 votes Thank Flag Link Tue May 7, 2013
Hello... In addition to builders the answer is YES there are listing agents who are required (by the seller) to have buyers approved by thier (the sellers) preferred or approved lender. If the property is owned by a bank (foreclosure) or by a non-profit it is common. In addition, on a rare occasion, a listing agent may request this from potential buyers strictly for the benefit of thier sellers and not because they are required to.

The reason for this process, while frustrating for you as a buyer, is that even with all the regulations and changes that have been made in the lending industry there are still loan officers that will issue a pre-approval letter based on incomplete data or verbal information. Basically, they aren't worth the paper they are printed on and often, if accepted, those offers do not close.

The listing agents job is to protect thier sellers and they want to ensure that the offer the seller accepts will close. So... while it can be inconvenient, it is for the right reasons. Also, it's important for you to know that it's your choice in the end. You can work with whomever you prefer.
Happy home hunting and I hope this helped.
0 votes Thank Flag Link Mon May 6, 2013
Are your buying in a condo development? Most developers require you to be pre-approved by Chase, BofA, Wells or one of three banks the developer registered with the DRE. After you get a letter from one of the 3, you should be able to use your own banker (even if in the same company) or a mortgage broker.) But you need to ask the personnel in the sales office to be sure.

If a homeowner asks you to be pre-qualified with their favorite mortgage broker, I would ask why and flat out ask them if they are related to this person. And ask your broker about the legality of this! I have never heard of this in 24 years in the biz.

Good luck,

Sally
0 votes Thank Flag Link Mon May 6, 2013
Home sellers don't have their own mortgage providers.

It's common practice for home builders to request buyers be pre-qualified by their mortgage provider, whether it's the first, second, or third pre-qualification done by that buyer.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Mon May 6, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer