Hi. I am in process of looking for a house. If I get preapproved, let's say for example, 180,000, but I am really only looking to spend about 120,000 for a house, because I don't want to put myself in a position where I can't make that higher payment, if you know what I mean. Anyway, am I obiligated to share with the real estate agent the full amount I am preapproved for , or can I just stay with what I want to spend, knowing that I already approve for at least that much. Reason was partly because I heard that some agents will try to push you into properities for the whole preapproved amount ( ex. 180,000) , even if you weren't planning to spend that much. Then, you have some agents who might reveal this to the seller, If they figure I can pay more, then I may miss out on a good deal. Just a thought. What are your experiences and thoughts on this? Thank you! :)
Thank you!
2007-12-17 02:45:01 · 15 answers · asked by Alana 2 in Business & Finance ➔ Renting & Real Estate
I was thinking of just saying, I don't want to go over, 129,999 ( or x amount). Can the agent find out what you approve for. Do I have to show her the preapproval paper?
2007-12-17 02:47:00 · update #1
You do not have to disclose what you are pre-approved for. If you do but also state what price range you want to stay in and an agent only wants to show you higher priced properties, it is time for a new agent.
You do not have to show a pre-approval letter to make an offer. Simply state that a pre-approval letter will be provided to the seller within 3 days of an accepted contract. That way you are not disclosing your purchasing power to the seller. Once you have entered a contract, your lender can submit a letter of pre-approval for the amount of the contract.
If you have your own buyers agent, they have a fiduciary responsibility to you, not the sellers. If you use the seller's agent, their fiduciary responsibility is to the sellers, not you.
2007-12-17 05:13:06 · answer #1 · answered by godged 7 · 2⤊ 2⤋
Remember there is a differance between what you are approved for & what you can afford, many times. Figure out the max payment w/principal, intrest, taxes & insurance(PITI). With that info you can determine the max house price you can afford. You do not want to go any higher than that under any circumstances no matter how good the deal. If your agent does not respect that get a new one!!!
You actually want a house that cost less than you can afford. If you're maxed out & anything happens you are in trouble not the agent. What if you lose a job, the furnace breaks down, the roof gets damaged, the car needs a new engine, there are medical costs, college for the kids.
Be patient and keep looking until you find a deal that's right for you not the Agents commission!
PS: Remember there are many exceptional Agents out there but many who pretend to be. Protect yourself.
2007-12-17 03:59:57 · answer #2 · answered by Christo 3 · 2⤊ 0⤋
You tell your agent that you can only afford $120,000. I think you are being smart. Just because you can get approval for $180,000 doesn't mean you have to or should. You don't want to be house poor. Get what you want and don't let anyone try to make you do otherwise. You want to have enough money to maintain the house as well as go on trips, buy food, have a car etc. If your agent doesn't honor your wishes get a new agent.
2007-12-17 02:58:17 · answer #3 · answered by psi2006 4 · 2⤊ 0⤋
You should inform your agent of your pre-approval level, so that the agent can make an informed decision on the types of properties to show you. Simply advise the agent that you have no intention of going over a certain dollar amount, even if you are qualified for more.
I've been there and done that with many clients, and it's amazing how many times they end up spending more than they wish to spend, simply because they're not pleased with the properties shown to them in the price range they selected.
2007-12-17 05:22:24 · answer #4 · answered by acermill 7 · 2⤊ 0⤋
Do not tell the agent what you can afford! Unless you have a "buyers agent" - even your agent is working for the seller. The more they can get you to pay for the house, the better their commission is.
If you'd like, go back to your mortgage company & request a preapproved statement to read $120,000 (even though you are approved for more), I would not be afraid to show this statement to the agent. That should keep them in your price range.
If you are not sure if you have a buyers agent - ask them, if they are working for YOU, they will be having your sign something for them stating this, otherwise, he/she is working for the seller. They do no tell you this part.
2007-12-17 02:53:01 · answer #5 · answered by jami 3 · 3⤊ 0⤋
Just be strong and stick to your budget, you are the buyer, YOU ARE THE BOSS. Tell them what/when they need to know.
Where I am licensed you have agents for the buyer and agents for the seller and impartial agents (transaction brokers). You also can have dual agents. If I was representing, as a buyers agent, or dual agent representing buyer and seller or transaction broker and I told the seller your budget you could report me to the board. Your fiances are confidential info unless they could negatively affect the deal.
For me the type of agency has to be discussed before any personal info is exchanged.
Ask the agent who they represent. Different state have different laws regarding representation.
2007-12-17 03:13:46 · answer #6 · answered by Ross 6 · 1⤊ 0⤋
You have to show them the letter when you make an offer. The letter is included in the offer package.
If your agent pushes for you to go over your budget find yourself another one. If they are not listening to you and helping you find what YOU want they are not worth your time. This is a major move on your part, you want an agent that will help you find the perfect property to meet all of your needs, including your financial needs.
2007-12-17 04:00:34 · answer #7 · answered by Landlord 7 · 4⤊ 1⤋
Don't tell the agent anything more than they ask or you want them to know. Don't let them become your "friend" too much. Because in the end they really do want their money. I wouldn't tell how much you pre-approved for unless he/she asks. Then just say you're looking for a house in the 120,000 range.
2007-12-17 02:48:22 · answer #8 · answered by part deux 3 · 3⤊ 1⤋
You're smart for having a budget. Tell your agent that you want to stick to a certain price range where you're comfortable. You can alway choose to go higher if a house is worth it, but that's your decision to make.
2007-12-17 02:51:45 · answer #9 · answered by Rita A 3 · 3⤊ 1⤋
No!
They represent the SELLER and they will use that information against you to get that seller the best deal.
What you heard about them pushing you into the maximum is correct, for the most part.
I don't like dealing with agents when buying, usually. You're better off if you can educate yourself enough to deal directly with owners, in order to get the best negotiation. Realtors will tend to "guard their interests" against the likes of you.
Realtors will also tend to poo-poo any sort of low, or creative offer that you come up with, or they will present it begrudgingly with inuendos against it.
2007-12-17 02:47:43 · answer #10 · answered by Anonymous · 1⤊ 2⤋