Home Buying in Millersville>Question Details

Amy, Home Buyer in Maryland

Is it againt any rules to have the sellers agent contact the buyers loan officer?

Asked by Amy, Maryland Tue Jan 29, 2008

We (the buyer) have signed a contract but the sellers agent has contacted our loan officer prior to showing this contract to the homeowner. I am concerned that our maximum loan approval has been disclosed. Please advise.
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It's a sign of a good sellers agent. The good news is that it appears there is an experienced and dilligent representative on the seller side. While they may negotiate tougher, the odds are that transactions go smoother w/ strong agents.

Your loan officer most likely has fielded several inquiries from agents in the past. A good loan officer will keep confidential info to themselves, but provide enough relevant nfo to provide assurances to the agents that this contract is solid and will be funded.
1 vote Thank Flag Link Wed Jan 30, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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It is not against the rules and every good seller's agent should do it. What I would ask as the seller's agent is not necessarily your credit score but I would ask if you have made full loan application or just a prequalification.

If you have made a full loan application, it tells me that you are more serious buyers because you went through the trouble fo submitting the paperwork to the lender (w2, bank statements, etc.), and it tells me that the lender has looked at your entire financial situation and not just at a credit score to qualify you for a loan. I would also ask if the lender anticipates this loan to run into issues.

The loan officer is not supposed to answer questions regarding the source of your downpayment, or any other information as well as the amount you are qualified for unless you gave him permission to do so.
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Tue Jan 29, 2008
As a listing agent, it is a prudent move to call the buyer's loan officer (most of the time I will already know the loan officer anyway) to find out more information about the loan , the program and so forth as it helps to present the deal to the seller and go over the positives and the negatives of the deal. It is a common practice, and probably should be done more !
0 votes Thank Flag Link Tue Jan 29, 2008
No Amy it's not against any rules. The listing agent wants to be sure that you are qualified to purchase the home and the sellers have every right to know your buying power. As a listing agent, some questions that I may ask the lender is 1) What are the fico scores, 2) What is the interest rate the buyers will get 3) How much of down payment will be made and where is the money coming from 4) How many loans will the buyer have and I would like to know if it's a special government subsidized loan. I need this information so that I can go back to my seller and let them know what a strong buyer you are and what a great offer you have submitted. Good luck.
0 votes Thank Flag Link Tue Jan 29, 2008
Amy,

In PA, with the market the way it's been with tightened lending, it's pretty common for a Sellers Agent to contact the loan officer to make sure that the preapproval that the Buyer supplied is a real one - with verified assets, credit that's been checked, income verified, etc.

I wouldn't think your loan officer would have disclosed the maximum that you can afford (you'd have to ask them) - they might have indicated that you can afford the offer you've made or that you're a strong buyer (if you are). But really, you're the one with the money - you decide how much you think a property is worth and how much you'll spend. Just because you qualify for a maximum loan doesn't mean you need to use it all.

Best of Luck,

Pete
0 votes Thank Flag Link Tue Jan 29, 2008
Amy,
Talk to your loan officer. It is unlikely the s/he disclosed what you are qualified to borrow. Indded, without talking to you first, the loan officer may not have told the seller's agent anything. The seller's agent should have asked you, through your broker, for permission to talk with your loan officer.
0 votes Thank Flag Link Tue Jan 29, 2008
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