Seller's Agent requesting Financial Information Sheet

Asked by Kirk Doyle, 21236 Tue Dec 9, 2008

Is it common for a seller's agent to request a financial information sheet with an offer? We provided a prequalification letter with the offer that stated our lender approved us, IN UNDERWRITING, for the specific house for the amount that we were willing to offer. Now the seller gets to run my credit?? Doesn't that take away some of my leverage? I know how much I can afford, but if the seller sees that, on paper, I can afford what my lender was willing to give me (way too much in my eyes), they may think that I can afford to negotiate more. I know it is my option to accept or deny the counter, but since I cant find out how how they owe on the house, they should not be able to know how much I can afford.

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11
Jamie21224, Home Buyer, New York, NY
Mon Mar 20, 2017
As a buyer's agent the practice of asking a financial informarmation does seem it will impact the negotiating power of the buyer. That being said, it is not in my client's best interest to disclose this information to the listing agent. It goes against the fiduciary responsibility I have for my client making it an ethics violation. I had my buyer fill out the form. I am now going to explain in writing what the implications are and have my buyer sign off before I submit this info.
0 votes
Kim Mills, Agent, Crofton, MD
Tue Dec 9, 2008
I agree with Art, however, in this market a seller may not be willing to lose a buyer over a financial sheet that they may not even understand. My experience has been the listing agent is making it a requirement, not the sellers. I would offer to give them the pre-approval and ask your lender to speak to listing agent and let them know you have had made full loan application, and have verification of employment, closing money, they have reviewed credit or where ever they are in the process. It is up to you if you give them the info. I had a client in the past who was willing to walk away from the deal over financial info and the seller conceded.
Good luck to you.

Kim Mills
Web Reference:  http://www.kimandrenie.com
0 votes
Art Lane, , Howard County, MD
Tue Dec 9, 2008
This is not particularly uncommon, in Howard County anyways, especially in light of the current economy.

Back in the days of a raging, upward market, Sellers sometimes required a financial disclosure to be appended to the offer to determine the relative solvency of potential Buyers. This exercise was done to select the best offer -- not necessarily on price -- but how likely a Buyer might be able to close should a wrinkle develop with their financing.

In today's market conditions, a Seller may request the financial disclosure in order to select a Buyer who has the most liquidity, should the home not appraise for the loan requirement.

I don't necessarily agree with the practice for many of the reasons you've cited. However, as long as the requirement for a financial disclosure is stipulated for all potential purchasers, you have little choice but to cooperate, unless you are willing to have your offer rejected as being non-compliant.
Web Reference:  http://home-sweet-home.us
0 votes
Scott Stulich, Agent, Dundalk, MD
Tue Dec 9, 2008
I have had this happen in only 1 deal. Just go with it as odd as it may seem...........
0 votes
David Chambe…, , Saint Petersburg, FL
Tue Dec 9, 2008
Pre-Qualification letter doesnt mean that much a Pre-Approved letter has a little more power to it. Which one do you have?

http://www.floridadreamloans.com/AreYouPre-Approved
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Dec 9, 2008
It is getting to be a new trend for banks request run credit. COULD recommend to run credit upon execution of the contract, not prior. GOOD LUCK.
Web Reference:  http://www.lynn911.com
0 votes
Debra B Albe…, Agent, Port St Lucie, FL
Tue Dec 9, 2008
In the reality of short sales, foreclosures, and the general condition of the lending institutions, it is now common to provide information for the bank at the time you make an offer on a property. Lenders are demanding it and qualification is a whole new ball game.
Ron and Debbie Albert
Coldwell Banker Residential
http://www.ronanddebbie.net
Web Reference:  http://www.ronanddebbie.net
0 votes
David Barnas, , Weymouth, MA
Tue Dec 9, 2008
Hi Kirk

For some bank-owned properties, I have sometimes seen the seller/bank request the buyer's FICO scores or a pre-approval letter from them. If this is a regular sale, however, the pre-approval letter should suffice for negotiations, since the financial information sheet would take away your leverage. As far as finding out what the seller owes, your buyer agent should be able to find out from the local registry of deeds.
Web Reference:  http://DavidBarnas.com
0 votes
Mike Benton, , Maryland
Tue Dec 9, 2008
Hello, My name is Mike Benton with Home Towne Real Estate .Were seeing this question asked more and more these days. What I think the seller should be concerned with is do you qualfy for this house. The problem with a pre-Qual letter is that it is based on information given to the lender. In other words incorrect in is incorrect out. It's hard to be in underwrighting without a contract in hand. I would only give them your contact information for your lender and have them speak with your lender and ask some basic questions about your qualtfications. Im sure the seller is not willing to loose a deal because you wont allow them to run a credit check. If your dealing with a well known local lender that should be enough. If you have any questions feel free to email me at http://www.mikebenton.net.
Web Reference:  http://www.mikebenton.net
0 votes
Lewis Poretz…, , Annapolis, MD
Tue Dec 9, 2008
My suggestion - If you love the house and you are getting a great deal, send them a copy of the automated underwiting findings or anything signed off on by the underwriter in addition to your credit report. No, you do not have to furnish this. A few years back in the hey day if you did not furnish these documents they would have never considered your offer. I think it is a fair request especially if you are getting a great deal. If you feel the seller is unreasonable and continues to ask for additional items that drive you nuts, move on. There is a mortgage crisis going on and houses are not selling. Move on to the next one and tell the seller good luck finding another buyer..... hope this helps...
Web Reference:  http://www.openmortgage.com
0 votes
Amanda Lopez, Agent, Lutherville, MD
Tue Dec 9, 2008
Good point Kirk. It can be common especially in this market and the difficulty some peeople have with obtaining mortgages the seller is looking to make sure you can afford this house. but like everything else, everything is negotiable. If you are that uncomfortable provoding financials maybe you can offer a larger deposit? From my knowledge I am pretty sure they will not be running your credit nor do they need to know specifics like account numbers etc but it is a basic statement listing your assests and liabilities. Ultimately it is your decision as to what the house is worth and ieven if they see that you can negotiate more, that doesn't mean that you would be wiling too. Talk to your agetn about specifically negotiating what you want. you still get to decide what you are willing to pay.

Good luck,

Cheers,
Amanda
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