Is it approriate for a broker agent to request a copy of my past two years W2 and 1040. He claim that he need it to show to the seller?

Asked by Eric Lim, Flushing, Queens, NY Sat Dec 8, 2012

He also need a copy of my credit report that show my FICO score.

Help the community by answering this question:

+ web reference
Web reference:

Answers

11
Christine Go…, Agent, New York, NY
Sun Dec 9, 2012
Hi Eric, How are you? Sounds like you're a little unsure about the home buying process. I would suggest that you work one on one with an agent who can explain the process to you step by step because there are many variables to your question. The answer to the documentation request you mentioned will depend on if you're paying cash or if you'll be getting a mortgage. It also depends on what stage of the process you're in. Are you just wanting to view a particular property or are you making an offer? Difficult for you to get an accurate answer in a forum such as this.

Looking forward,

Christine Gordon
Licensed Real Estate Salesperson
Cell: 917.881.2924
Fax: 347.328.9352
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
5 votes
Joseph Hasti…, Agent, Bayside, NY
Sun Dec 9, 2012
Hi Eric. It is not inappropriate to ask for this type of documentation. You use a very specific term in your question. If this is really a "broker agent" as you state, then he is a sub-agent of the listing agent and you signed off on the NYS Agency Agreement Form which is required by law and so stipulates the relationship between you and the broker. As such, he may be acting on request of the listing agent who has asked for specific documents because the seller wants to view them to determine if the customer has the ability to complete the purchase.

There is a standard form of financial disclosure put out by REBNY and I give that to prospective buyers if they want to submit an offer. I also ask for a written offer, credit report with a FICO number and a letter of pre qualification from their lender. If there is no lender (cash deal) I will certainly ask for more documentation of finances.

Nothing unusual here and it is appropriate. Also, if you're purchasing a coop or condo, the application package would require this type of documentation anyway so, at some point you would have to turn over this stuff to the broker. You can always play hardball and just give him the first page of your 1040 that shows your total gross income if you feel uncomfortable but that may cause ripples. Good luck.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sun Dec 9, 2012
If you have a mortgage pre-approval letter, no other information is necessary; if you don't, and are uncomfortable providing the agent and seller the information, do give your paperwork to your attorney, so that he/she can reassure the seller's side.....
1 vote
Gail Gladsto…, Agent, 11743, NY
Sat Dec 8, 2012
It would have been more appropriate if your Realtor had requested you apply for a full pre-approval before working with you and let your mortgage broker have these docs to complete that process.

If you already have a full pre-approval, that's all the seller (or their attorney or Realtor) should need. They really should not be looking at your private documents.

If you have not been pre-approved, I understand why they would not want to be locked into a contract with someone who might not qualify for a mortgage.
1 vote
Martina Ryan, Agent, Flushing, NY
Mon Dec 10, 2012
If you have a pre approval letter from a mortgage company you can avoid all of this. The seller needs to be sure that you are a serious buyer.
0 votes
Jacques Ambr…, Agent, Forest Hills, NY
Mon Dec 10, 2012
I wouldn't go to contract with a buyer without first getting this information
0 votes
Charlie Summ…, Agent, New York, NY
Sun Dec 9, 2012
Yes. The agent needs to verify that you are financially qualified for the purchase.
0 votes
Christopher…, Agent, Tarrytown, NY
Sun Dec 9, 2012
A proper pre approval letter froma reputable lender should suffice, will look at all this before pre approving you.

Chris
0 votes
Elena Ravich,…, Agent, New York City, NY
Sat Dec 8, 2012
If you are buying a coop or a condo that requires a board approval, a complete financial disclosure would be required in order to prepare a board package. Also each building has its own application form and a list of required documents, they generally include, 2 years of tax returns and W2s, last few paystabs, reference letters, employment verification letters, bank statements and financial statments. The seller before accepting an offers has to make sure that a buyer is qualified to pass the board. Boards in New York are very strict and in addition to running a credit check and reviewing financial information for a potential buyer, they also have some post closing requirements - you should check with your broker what they are (usually it is no more than 30% debt to income post closing and 2-2.5 years of maintenance and mortgage payments in liquid assets.
0 votes
jmincheff, , New York, NY
Sat Dec 8, 2012
Are you making an offer on the property? Generally, you'll need a financial statement. If the seller is requesting your tax information for an offer, be sure to redact your social security number- leaving only the last 3 digits.
0 votes
Nick Rafello, Agent, New York, NY
Sat Dec 8, 2012
Yes. Probably will need to show paystubs too.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more