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Asked by Brian, 92397 Fri Jun 15, 2012

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Answers

7
James Foy, Agent, Costa Mesa, CA
Sat Jun 16, 2012
BEST ANSWER
Brian,
I think you've answered your own question to some extent.

Go find a lender and get pre-approved and have him sign a non-disclosure agreement (NDA) before you'll do business with him. Pay a lawyer to draft the NDA and put it on his letter head, that should help your lender understand your seriousness.

Then go find an agent and give him or her the pre-approval letter, and have them submit offers on your behalf.

When I was investing I was buying a home and lender needed two years of my taxes and bank statements and they asked me to fax it. I told them to load the fax as that would be over 200 pages. They thought I was joking. So, my other advice, is make sure your lender understands that you're serious about your confidentiality.

In today's high tech world, shop them in different locations. There's no need have them close together.

Good luck,
1 vote
Excellent! The NDA is a nice addition. I was sick to my stomach as I felt my Realtor counting the money I had in the bank along with my credit score just knowing my deal was going through because I was solid--it really isn't any of her business! I felt so violated!
Flag Sat Jun 16, 2012
Terry Bell, Agent, Santa Rosa, CA
Sat Jun 16, 2012
Well, I can understand you not wanting your realtor to discuss your finances with your sister, my family is very much the same way, heaven forbid my brother should discuss his business with his "little sister". But as a realtor, I do need to know something about the finances of my clients so I can best advise them and have an idea of what they can stretch to if something comes up of interest. What a realtor must not do, is to share your personal financial information with the seller or seller's agent without your permission, that's why there are pre-approval letters!. Why don't you start out fresh with a new agent and lender and let them know your privacy concerns in advance.
1 vote
Bo Goulet, b…, Agent, Spring Valley Lake, CA
Sat Jun 16, 2012
Brian;

I understand your concerns. Privacy is very important.

A Realtor's job is to represent you, the buyer, and to help you acquire real property. Your Realtor should be able to help you find a lender that is best suited to your needs, and knowing some information about your income, credit, and assets can help your Realtor find you the best lender.

Sometimes, a pre-qualification letter is confused with a pre-approval letter. A pre-qualification letter is often provided without verification of income or assets. A pre-approval letter should be provided only upon verification of income, credit, and assets.

In order to help you, a Realtor needs to know in advance that you are qualified to purchase.

I would recommend using a Realtor that you can trust with your personal business.
1 vote
Lance King, Agent, San Francisco, CA
Sat Jun 16, 2012
The issue is with your agent not with process. In San Francisco we frequently have cash buyers, and even those with loans are often asked to provide proof of funds. We would never discuss anyone's financials with anyone else unless asked to do so, but should be able to avoid this with a simple NDA as pointed out below.
1 vote
Vicky Chrisn…, Agent, Purcellvile, VA
Sat Jun 16, 2012
I am not sure why it's so important to you, but since I am that way about health information, I'll just go with it. However, before I do, let me tell you that lenders provide confidential information often to me - not REALLY confidential, but basics, and it STAYS with me. No exception, no matter what... no matter who I am friends with. I take my job seriously. AND, I use the information ONLY to help... and sometimes it does help that I have some of that information - I can offer alternatives to the lender or borrower or clarity on something.

Having said that, just tell the lender that the agent is on a need to know basis and that other than the approval, you want them not to discuss anything with your agent. If there is a specific reason that the agent needs to know more, tell the lender that you'll need to specifically authorize that information to be shared. The lender should honor that.

Lastly, I wish to address the idea of you not using a lender suggested by your agent. Right now, I have a buyer who may be in the midst of a lawsuit because he insisted on choosing his own lender. With a down payment of over 50% of the cost of the home, and 60 days to get the loan approved, settlement came and went without full approval. I have no weight with his lender. Neither does he. MY lenders would NEVER do that. First, my lenders became my lenders because of careful screening and repeatedly showing me what they could do - and doing it well. I refer them because I have the comfort level of knowing they will deliver. An internet lender? Not so much. Someone you used 10 years ago? Not so much. Trust me on this. All lenders are not created equal. Plus, if they screw up, I would never provide them another referral... and I would talk with every agent I know and tell them about the experience, and I'd blog about it... and trust me, it would hurt that lender. So they have to treat every referral extremely carefully.

So if you want to pick your own lender, it might work... but it might not, and you're at their mercy. PLUS, you are held accountable for the decision of choosing your lender. Your right = your responsibility. So, they don't close or close on time - you're responsible.
Web Reference:  http://www.vickychrisner.com
1 vote
Ruth Feast, Agent, Hesperia, CA
Fri Jun 15, 2012
Hello Brian
There are couple of things in your questions that I like to address:
First of all the lender should keep your personal information private, such of your SS#, where your income is coming from etc. As a realtor I will ask you if you need any help with closing cost so I can request that in the contract, some of the banks also sometimes request proof of funds. Obviously they like to know whether your have the funds to close the transaction. I think that in any transaction there should be respect and also report and trust, if you feel like disclosed your personal business that is at your discretion.
Both the lender and the Realtor need to have the best interest for the client.

best regards
Ruth E Feast
1 vote
Jonathan Zuc…, Agent, San Dimas, CA
Sat Jun 16, 2012
There's no reason why a buyer for investment properties would ever or should ever want to do it on their own without a realtor and here's why: Commissions for realtors are ALWAYS paid by seller. For a buyer to use the expertise of a realtor costs the buyer nothing, as the commission for this realtor is paid by the seller. Realtors make a living doing real estate, and while you think you may know some things about real estate, odds are good that most realtors will know better how to help you get a better deal while avoiding legal exposure. No good reason to not use a realtor. Thanks, Jon ZUckerman 909-559-5275
0 votes
Also, lowering a purchase price by the 6% realtor commissions would be would net me, the buyer a MUCH better deal. Not that I'd do this because I prefer having someone to be my task manager and do all the busy work!
Flag Sun Jun 17, 2012
I'm puzzled...all the other folks read my question, you did not. Is this the attention to detail you provide when representing buyers and sellers? I said nothing about not using a Realtor to do Realtor things but meddling in my personal finances goes a bit too far. All the realtor needs to know is that I need them to show me properties in a price range and I've been pre-approved with lender backing to do so...they don't need to know my credit, size of my bank accounts, or sources of income. My last purchase the realtor part of her job was great...the meddling in my finances as a highly qualified buyer, not so much!
Flag Sat Jun 16, 2012
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