Agent knowledge of variouis parameters (new agent, settlement, commissions, contracts)
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That's MUCH too time consuming. Suppose you find the house on which you want to make an offer on Friday night or Saturday morning. It will be at least Monday morning before the banker will be back at work, and likely wouldn't be able to furnish you a letter until at least Monday afternoon, or maybe later depending on his/her schedule.
When you want to make an offer, you want to make it NOW. Far better, IMO, to simply furnish a letter from your banker to your REALTOR showing the maximum amount you are eligible to borrow or pay CASH for. Then, if/when you find a house that you want, you can have your realtor assure the other realtor that you are well qualified and approved for that purchase.
All this red tape about getting a new letter every time you decide to make another offer or increase an existing offer by a few thousand dollars is a bunch of hogwash. Actually, I have a more descriptive name for it than "hogwash", but the language filter on here won't let me use it.
All of this red tape BS is one reason I only use realtors when necessary, usually when purchasing. When I'm ready to seriously consider buying a house in a particular market, I find a realtor and disclose sufficient information to him/her about my capability and intent to purchase a property. If that's not sufficient for them, then I find a different realtor.
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You give horrible input and people asking questions deserve more.
Quote:
Originally Posted by MikeJaquish
Yes.
If a lender will not give you a letter with an amount you want under your maximum approval, you need a new lender.
If you go to your max desired, and a counter-offer comes back a few thousand over that letter you got, and you want to proceed above your initial limit, your lender will give you a new letter covering that higher amount. IF the lender won't, you picked a poor lender.
If you need a letter for a few addresses because you are losing in multiple bid offers, your lender should provide you with a letter for the amount and address you request.
If your lender is not onboard with these points, find a lender who is.
And, I didn't think it needed to be said, but clearly it does.... If your lender cannot provide you with preapproval letters on Saturday and Sunday, find another lender who is in touch with the demands of a fast moving market.
As a former realtor, I feel this is bad advice. You don't want the seller how much you are approved for, only that you have pre-approval for the amount of an offer. You don't want to make it clear to the seller that you may be approved for more by the lender so that they don't insist on a higher selling price before accepting an offer.
Obviously, bankers work "bankers' hours" and it is not likely that late Friday, a potential buyer likely will get a new, updated letter until Monday. Not likely a home/property closing will happen on a weekend either. Anyone can make an offer at any time, but the reality is that real estate transactions typically only occur during business hours. This is nothing new and whining to a bank or title agency won't change anything. Heck, I doubt that it would be any different with a real estate lawyer either.
Eh.
I've collected too many signatures at 10:00 on a Saturday night to worry about "Business hours."
Part-timers and dilettantes and some dabbling bankers work "Business hours."
As a former realtor, I feel this is bad advice. You don't want the seller how much you are approved for, only that you have pre-approval for the amount of an offer. You don't want to make it clear to the seller that you may be approved for more by the lender so that they don't insist on a higher selling price before accepting an offer.
Obviously, bankers work "bankers' hours" and it is not likely that late Friday, a potential buyer likely will get a new, updated letter until Monday. Not likely a home/property closing will happen on a weekend either. Anyone can make an offer at any time, but the reality is that real estate transactions typically only occur during business hours. This is nothing new and whining to a bank or title agency won't change anything. Heck, I doubt that it would be any different with a real estate lawyer either.
I totally disagree. The worth of someone's house to me is not a matter of "how much I'm approved for." It's a matter of "how much I'm willing to pay."
Your statement about "business hours" for realtors is rather funny. I'm sure that many realtors reading that got a good laugh out of it.
You give horrible input and people asking questions deserve more.
And, I didn't think it needed to be said, but clearly it does.... If your lender cannot provide you with preapproval letters on Saturday and Sunday, find another lender who is in touch with the demands of a fast moving market.
My comments were directed to Smart Money in the quoted post. Others can decide if my comments are applicable to them.
On your second point, if you had read (and understood) my post, you would see that I've already addressed that issue. Your failure to read and comprehend is not my problem.
My comments were directed to Smart Money in the quoted post. Others can decide if my comments are applicable to them.
On your second point, if you had read (and understood) my post, you would see that I've already addressed that issue. Your failure to read and comprehend is not my problem.
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Oh, I DID read and understand your post. It was not private, nor would most forum visitors consider it as such.
The points provided were terrible if a hapless retail consumer accepts them as good ideas. The OP, who may well read the entire conversation is clearly a struggling retail consumer and deserves good advice or silence.
You also must play in very slow markets. That is not the case in many areas with fast-moving inventory. You have the right to act as you mention if you can get others to play along.
The experience of working for some time in retail brokerage improves knowledge of typical market dynamics and expectations of other parties.
That experience is hugely important when working as a fiduciary for buyers and sellers, with responsibilities to help them succeed.
It helps one realize that many sellers require an address for the subject property on the preapproval letter.
It helps one recognize that most retail buyers don't want to show their maximum financial capabilities in a preapproval letter to strangers.
It helps one know that many markets move over the weekends. Offers on Saturday and Sunday and results announced on Monday or Tuesday, with listing agents taking 2 or 3 days after contract execution to update MLSs.
What kind of fool would engage a lender/MLO who is unavailable from happy hour Friday through most of Monday?
That would be extremely foolish in any healthy local/regional market.
Note my mention of getting signatures late on a Saturday night, when your typical choice of lenders would have been off for over 24 hours.
Oh, I DID read and understand your post. It was not private, nor would most forum visitors consider it as such.
The points provided were terrible if a hapless retail consumer accepts them as good ideas. The OP, who may well read the entire conversation is clearly a struggling retail consumer and deserves good advice or silence. You also must play in very slow markets. That is not the case in many areas with fast-moving inventory. You have the right to act as you mention if you can get others to play along.
The experience of working for some time in retail brokerage improves knowledge of typical market dynamics and expectations of other parties.
That experience is hugely important when working as a fiduciary for buyers and sellers, with responsibilities to help them succeed.
It helps one realize that many sellers require an address for the subject property on the preapproval letter.
It helps one recognize that most retail buyers don't want to show their maximum financial capabilities in a preapproval letter to strangers.
It helps one know that many markets move over the weekends. Offers on Saturday and Sunday and results announced on Monday or Tuesday, with listing agents taking 2 or 3 days after contract execution to update MLSs.
What kind of fool would engage a lender/MLO who is unavailable from happy hour Friday through most of Monday?
That would be extremely foolish in any healthy local/regional market.
Note my mention of getting signatures late on a Saturday night, when your typical choice of lenders would have been off for over 24 hours.
It's not the markets I play in that matter. It's how the game is played. As I said above, I provide sufficient evidence to MY realtor of my financial ability before I start looking at properties. That way, when I make an offer to purchase, my realtor already has all the financial info that is needed to substantiate my financial worthiness to purchase any property that I make an offer on.
No need to chase down lenders or loan officers at all hours of the night or weekend. Also, no need to play the "that's all I can afford to pay" silly game when making an offer. In fact, if I'm a seller, I'm LESS likely to sell to someone who is stretching their budget to the max in order to buy my property because I know that means that if some problem comes up during the inspection process, then it will be ME who has to pay for fixing it because the buyer is already maxed out.
Your method may be convincing for the typical uninformed buyer and seller, but anyone with even a smidgen of knowledge about the real estate selling process knows that dealing with someone who is maxed out to their last dollar means that any hiccups along the way will result in more money coming out of their own pockets. If I'm a seller, I'd darn sure rather sell to someone who is OVER qualified than someone who is stretched tighter than a banjo string. I might even be willing to accept a little less than my asking price to sell to someone who I know is OVERqualified than hold out for top dollar from a marginally qualified buyer.
Chas,
Every time you embark on one of your rambling stemwinders, you make me doubt you have any real idea how retail residential real estate transactions work for the vast majority of consumers.
Every time.
Today is no exception.
Willingness to hurt consumers to grab an opportunity to preen is hardly helpful to anyone.
Chas,
Every time you embark on one of your rambling stemwinders, you make me doubt you have any real idea how retail residential real estate transactions work for the vast majority of consumers.
Every time.
Today is no exception.
Willingness to hurt consumers to grab an opportunity to preen is hardly helpful to anyone.
To the contrary! My suggestions treat both buyers and sellers respectfully instead of as some dunces that need to be misled and deceived into doing what you want them to do because you can't trust them to be informed of the real situation.
And your comment about "rambling stemwinders" is more applicable to your own posts than mine.
To the contrary! My suggestions treat both buyers and sellers respectfully instead of as some dunces that need to be misled and deceived into doing what you want them to do because you can't trust them to be informed of the real situation.
And your comment about "rambling stemwinders" is more applicable to your own posts than mine.
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How many retail real estate transactions have you brokered with a buyer, seller, and another agent involved, Chas?
How many of your clients refer/referred friends and family to you?
Oh. Yeah. Gotcha. "Facts don't matter. Ego matters." Personally, I prefer facts over "Neener, Neener" stuff like this:
How many retail real estate transactions have you brokered with a buyer, seller, and another agent involved, Chas?
How many of your clients refer/referred friends and family to you?
Oh. Yeah. Gotcha. "Facts don't matter. Ego matters." Personally, I prefer facts over "Neener, Neener" stuff like this:
Typical diversionary tactic from you. When you can't win the argument, change the subject.
Game's over. I've got better things to do than waste my time responding to your "stuff". We know that you just jumped into the thread for attention anyway. Mission accomplished.
Now you can make the last post because I have better ways of spending my time. Adios.
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