There is a house I would like to make an offer on in Queens, NYC. It's a short sale. As a 1st time homebuyer, I planned on taking advantage of incentives from SONYMA (state mortgage assistance) In addition to SONYMA my bank also has a 1st time homebuyer's program. My credit scores are good. The agent, however, says that they will require me to use their mortgage broker to do this deal. He says they want to avoid even the smallest things that would interrupt the closing. The offering price for the short sale is suppose to compensate for the "little bit extra" paid to the broker. Can I be denied this house if I'm uncomfortable using his broker?
2007-12-06 11:36:11 · 8 answers · asked by sunpleasures 2 in Business & Finance ➔ Renting & Real Estate
That is not only unethical, it's illegal. By law, you have the right to procure your own financing, and you, by all means need to do just that. You have seen some "red flags" with this agent no doubt, because you are posting this question. If you want this property, you might have to continue dealing with this agent, but if you have your own mortgage broker, you will fare much better, and they will work to get you the best deal for your money.
By the way, if that agent isn't your buying agent, he doesn't have any obligation toward you. He is an agent for the seller. By law, he is one-hundred percent committed to getting the best price for the seller.
You're doing great for a first time buyer or any buyer because you did your homework, but most of all, because you trusted in your intuition that told you something wasn't quite right. That's tha bomb!!!
2007-12-06 12:02:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Keep in mind your agent wants to get paid. They don't get paid unless the transaction closes.
The agent has had experience with their lender already and has done previous transactions. Your agent needs someone they can trust. Not someone who is going to tell you lies just to get you to fill out a loan app.
Also don't fall for the phrase your bank is giving you when they say they have "First time buyers program", they all say that.
What is important here are 3 things.
1. Your interest rate
2. The money you have to put to get the loan
3. The payments
What I would do is this. Tell your agent that you will meet with their lender but you want the best rate possible. And tell them that after the mortgage banker gives you their best rate and fees you will be comparing to others.
Also do not take anything verbal. Verbal words mean nothing...just remember that. Tell them to put it in writing. Even if its just pencil on a paper thats fine. That way if you get down to closing and they change things you can remind them.
Lastly, the rate you are promise now can change tomorrow so you want to ask them to LOCK IN THE RATE. This way it is impossible for you to lose the interest rate quoted. Remember, once you are satisfied with what they have to offer tell them to lock in that rate.
I am in the real estate business and most banks are horrible to deal with but us agents do transactions all the time and we know what lenders are good and which ones are bad. In fact I would be willing to bet if you try to go through a bank you'll be paying through the nose and also they are slow as heck and hard to reach when you have questions.
2007-12-06 13:48:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Time to turn that real estate agent into the New York State Association of Realtors. He has absolutely NO right to require you to use a certain broker. That's verboten, if you get the picture.
2007-12-06 11:43:46 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
nothing wrong with checking them out and see if you are comfortable using them. You can talk to another lender and compare the two for the best deal.
Usually the real estate agents make good referrals, because they deal with these people a lot and know they close deals with minimum problems. They do not refer you to lenders that do a bad job or botch up deals.
2007-12-06 11:44:43 · answer #4 · answered by bush l 1 · 0⤊ 0⤋
genuine belongings brokers and brokers in actuality are out of the photograph, like the final submit says. RE brokers extraordinarily have little or no to do with "processing" or approving a house own loan.
2016-10-01 00:52:07 · answer #5 · answered by ? 4 · 0⤊ 0⤋
This is total crap. I recommend lenders because they are meticulous, friendly and efficient but you cannot be required to use a particular lender to complete a transaction.
No, you cannot be denied this house. Find a new Realtor.
2007-12-06 13:31:48 · answer #6 · answered by godged 7 · 0⤊ 0⤋
It is NOT LEGAL to require you to use any bank or broker.
Do not do business with this agent, they are scummy and unethical.
Have another agent write your offer. Usually you stick with your agent, but not if they are deceiving you.
2007-12-06 11:44:05 · answer #7 · answered by Landlord 7 · 1⤊ 0⤋
you need to shop around, and don't go on line
use a mortg company that you can speak with over phone and in person and ask them if they will be at closing
2007-12-06 13:01:10 · answer #8 · answered by jeanniep 5 · 0⤊ 0⤋