Nate Oskar

After more thought and reading Jeannette's answer I have to agree with her. She summarized very well what I was trying to say - no, as long as everyone is acting ethically.

-Nate - Tue Jul 10 2007, 12:02

If both are from the same brokerage that is called dual agency and may present some inherent problems and conflicts with regard to being able to perform ones fiduciary duty to all parties. Some states, though not ours, have adopted legislation that prohibits dual agency. In Arizona we disclose if there is dual agency to all parties several times in writing.

With that said, I have seen some of these deals go great where everyone wins and I have also seen deals where there was clear agency and the agent didn't look out for their client's best intentions.

The bottom line is find an agent that comes well recommended and work with that person closely. Ask questions - get answers - and if you have any questions talk to the broker. - Tue Jul 10 2007, 11:36

I know I'm a little green to be asking for a badge, but maybe I could just get a gold star or an 'I Heart Trulia' icon or something....

Maybe???

No?

Ok... I'll just keep contributing until I get recognized at a party like Mitchell. - Tue Jul 10 2007, 11:27

Hello Yar,

The other's have done a great job answering your question. I especially liked Jeannette's response regarding loyalty. Well put!

However, I would like to touch on one segment of your question. I believe that you should keep searching on your own. I know that it helps me tailor my searches when my clients bring me things that appeal to them.

The most important part of a search, beyond finding a great agent, is to communicate honestly with your agent. Tell them what you do and don't like about every home discussed.

Good luck with your search!

-Nate - Tue Jul 10 2007, 11:16

I recently started tracking my up-calls and showings for my listings where I used a virtual tour versus ones where I used an elevated photo because their cost is comparable. It is clear that my level of activity for listings where I use the elevated photo is much higher. And no, I don't own any stock in the local elevated photo company - I just love and believe in the product!

Kimberly is absolutely correct though - sometimes there are listings where a virtual tour is ideal and there are even instances where the elevated photo is not appropriate.

All in all, it comes down to what best suits the property.

-Nate - Tue Jul 10 2007, 11:03

Jennifer,

Your family member and the non-English speaking customer's experience with the lenders you cited are prime examples of predatory lending and bad agents.

As a real estate agent I take my fiduciary duty to my clients very seriously and therefore seek to work only with professionals of the highest moral standard. In our office if there is a lender, appraiser, home inspector, title company, or any other service that treats any of our clients with any level of mal intent we simply never use them again.

Arthur's input regarding one's ability to determine their DTI is extremely valuable and definitely an integral component of what makes up a borrower's picture. I am grateful for his links. However, you still will not know what interest rate, loan origination points, etc you qualify for and therefore what your true purchasing power is.

Predatory lending is an animal that I hope will soon be extinct. The recent shake up in the sub prime market is a prime example of the lending industry shifting to correct their previous mistakes. It is sad that so many people got into those loans as it gives our entire industry a bad name.

Being that you are a writer for the newspaper I am sure you have seen articles relating to this matter. It is a serious issue.

Thank you,

Nate - Tue Jul 10 2007, 10:46

Jennifer,

I never meant to imply that you were unable to handle any secrets that exist or that I wanted to keep you in the dark - if the answer was that easy and general I would have given it. The fact is that the answer to your expanded question is not able to be answered by any real estate agent - and in fact probably not by any lender for that matter without knowing your financial and credit picture.

Whether working with a direct lender or a mortgage broker, you are dealing with loan programs and these change constantly.

There is no big conspiracy here to keep you in the dark. What is important is that you understand that only a loan professional can give you an idea of what you qualify for. Since you own your own company I can tell you that you may be looking at a stated income loan and with that there is another set of mild complications.

If you want a rule of thumb that seems universal I would say that you want to keep your housing expenses to 1/3 your income.

For instance, if you make $5,000 a month you could assume that you can spend $1600/month on housing. But to know what that will get you, you will need to know what interest rate you are looking at. In addition to that there are many programs. The amount you can afford for a home with a 10 year fixed will be significantly less than if you opt for a 30 year. Then you get into option ARMs and too many others to list.

I never meant any offense and I'm sorry that you don't like my answer but the truth of the matter is that you need to know where you stand and only a lender can tell you by running your information. I only wish that there was a logical calculation that I could give you that didn't require the need for your personal information. I truly believe in the spirit of trulia.com and have no desire to keep anyone in the dark.

Thanks,

Nate - Mon Jul 9 2007, 15:11

Hello Jennifer,

Bruce is absolutely correct in asking why would you ever want to do this.

You wouldn't go to a department store and shop for a new wardrobe without knowing how much you have to spend. Obtaining a pre-qualification letter from a lender is a rather painless and quick process. Besides, it is an opportunity to learn about what may be lurking on your credit report and begin the process of fixing it.

In my own personal experience I learned that I had an erroneous entry on my credit report that caused for my score to be significantly lower and therefore my interest to be higher. It took me a couple weeks to straighten things out.

Good luck!

-Nate - Mon Jul 9 2007, 13:50