Agents asking to get Prequalified by particular lender?

Asked by John1212, Las Vegas, Las Vegas, NV Thu May 10, 2012

I am currently in the process of buying a home but I am sometimes told that I will need to get prequalified by a particular lender on some of the homes that I like. I do not feel comfortable exposing my credit report and personal information to someone I do not know especially if I am not getting a upfront guarntee that my offer will be accepted. I have my own letter and I dont see why I need someone else pull my credit or even see my credit report. Is there anyway to get around this?

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Verde Mercado, Home Buyer, Boulder City, NV
Thu May 10, 2012
Maybe this is why they want a more solid approval:…
1 vote
Rob Flitton, Agent, Huntington Beach, CA
Thu May 10, 2012
Speaking of "how to win at negotiating" - - - - - >…
1 vote
Electricloan…, , Phoenix, AZ
Tue May 22, 2012
I agree with all of these answers, the agent has a fiduciary duty to their client. The listing agent's client is the seller, if they are not familiar with the lender rather than finding out Joe Blow lender dropped the ball at the 11th hour they can rely on their lender to get the job done. Chances are that rates and fees are close to the same, and RESPA prevents any "kickbacks" so there is usually none of that going on.

-Justin, The Electric Loan Officer

More on Fiduciary Duty ->…
0 votes
Robert Adams, Agent, Henderson, NV
Fri May 18, 2012
I was going to explain but others have already done so. I second what Damon Botticelli stated below. If you want to even have a chance at getting it accepted than I suggest you take 20 mintues to get approved via their lender. You don't have to use them but this lets the seller know you are serious.

Please feel freee to contact me with any further questions.

Best Regards,
Robert Adams
LVrealestateHELP Team at
Rothwell Gornt Companies
0 votes
Vera Gonzalez, Agent, Sterling Heights, MI
Fri May 18, 2012
If you love the house and want it do it. If your not comfortable don't.
0 votes
David Cooper, Agent, Los Angeles, CA
Thu May 10, 2012
John. Part of the negotiation in getting the lowest price on your purchase, is giving the seller confidence that you can close the deal. If the seller asks for a particular lender, I am going to ask for a lower price. That's part of the give-and-take when negotiating when you work with an experienced agent who knows how to win at negotiating.

All your credit information is available already for anyone who wants to pay to get it. You have nothing to lose, and everything to gain in getting a better price

DAVID COOPER Investor with Buyers Agent License at Since 1917 Realty 702-499-7037
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0 votes
Annette Law…, Agent, Palm Harbor, FL
Thu May 10, 2012
I do the same thing. If a buyer submits an offer with an approval from "InTheWind Lenders LLC" I will advise my buyer to require an approval from a local that I can actually knock on the door should things go wrong. Very, very, very often, the buyers lender has done NOTHING to verify the data provided by the borrower. Validation is on hold UNTIL 2 weeks before closing. The problem is...even though you have great trust in your lender, it is the last two weeks that raises the curtain on what is happening when no one is watching. By that time...everyone has mostly packed and ready to move. Spent money, attended farewell parties, been roasted,,the whole deal. Scheduled shutoffs and contacted insurance companies. Then, two weeks to go and the bank says, "What? You're married!" or better still, "Hey, you just bought a caddy...on credit!!"

Now, if your lender is a well known lender, that may be sufficient in a traditional transaction. It's "InTheWind Lenders, LLC" that raises suspicion. As mentioned by others, if you are buying bank owned either dance to the banks tune....or you have to find another party..

I don't like it either. Sigh..Too big to fail, means too big to govern.

It us only going to get worse as Rob so craftily revealed.
0 votes
Damon Bottic…, Agent, Las Vegas, NV
Thu May 10, 2012
Good answers from Rob & Rob below. Blame it on the seller, blame it on the agent(s), or blame it on the countless pre-approvals from lenders that weren't worth the paper they were printed on...the fact is, by failing to comply with the request, you greatly reduce the chance that the seller will accept your offer in what is currently a VERY strong seller's market. The seller could easily have 20 offers to choose from and those that don't want to provide most proof of their ability to close will be the first ones in the bin.
0 votes
Rob Turney, Agent, Henderson, NV
Thu May 10, 2012
I totally understand your frustration, as a Realtor that has been around for over a decade, this requirement is very unsettling. It used to be that only new home builders would make this demand, but now with so many institutional sellers, it is becoming the norm. You will run into this issue anytime you are buying an REO property and I'm quite certain we will begin seeing it in short sales as well. The only real way around it, is to refuse to do it, but most REO (foreclosures) agents won't even submit your offer to the asset manager of the institution that holds the property without an approval from their preferred lender. The reason they do this is quite obvious, they want the opportunity to try and recoup their losses by keeping the new loan in house. The excuse they use is that they want to ensure a smooth transaction and that you don't have to use their lender as long as their lender approves you. My suggestion, would be to have the lender that you trust contact the preferred lender of the seller and see if they will allow your lender to "share" the information he or she used to prequalify you. I have had some success with this in the past, but I've also run into road blocks with it as well, especially with BofA.
Good Luck and Happy Hunting!
Rob Turney
0 votes
Rob Flitton, Agent, Huntington Beach, CA
Thu May 10, 2012
It is a "market driven" request ... a rational seller wants to know that if he/she is taking their home off of the market that the buyer is "objectively" qualified to actually close on it. Right now, offers generally won't be considered without a pre-approval letter - because inventory is so low there are often a half dozen or so other offers to compete against and the lack of a pre-approval letter simply makes your offer "uncompetitive."
0 votes
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