Go to sleep... lol

If I had to put myself in a clients shoes, yes, I wouldn't want anyone else to know about my finances and such. Just the people that need to know.

I think people just need to let go of the situation and put trust into the lender. Now...after being on here for 32 days now, I know many of you don't trust many lenders.....that you have your favorites. (hey, I am over here...try me....) lol

But seriously....overall, I do remember the days when a realtor would qualify a borrower. But there is just too much out there. Should I advise a client that they need to look at another house, just because I saw a picture of the front yard?  Here is something that I wrote 3 weeks ago...about people being both a realtor and a loan officer> Part Time Realtor & Part Time Loan Officer : All in one. How is this possible?

It's not 100% of what you are talking about.... but it does give some insight.

Thought provoking as always Kristal.

For me personally; I would want my agent to know as little about my finances as possible.  Just a privacy thing.

I thought Sara's Authentic Living blog related well to this and your last posting. 

Kristal: 

I could reference at least 15 posts in the past 6 weeks that dance around this issue but I believe that Lenn Harley said it best in this posting about a fiduciary responsibility.

3-4 "Blogbacks" ensued and a tremendously educational discussion  developed about our respective roles.  Lenn made a comment about how Realtors "used to" pre-qualify" and mentioned her time in the profession.  I. coming from a family of Realtors, remember my mother teaching me how to do a "pre-qual" when I was in the 11th grade.

I don't think that there is a professional lender around that woudn't want you to pre-qualify.  I try to teach Realtors how to do a 5 minute pre-qual to insure that they have a real buyer with them.

More...not less, services should be provided by you, The Realtor.  More, not less, services should be provided by me, the lender.  I've had to explain zoning variances (as it relates to the lender's position inuderwriting) which is clearly not a function of a loan originator. 

The more we know and offer our customers makes for better transactions

Krystal,

Thirty some years ago when I left banking to sell real estate I shortly discovered buyer’s are liars! It took just a little bit longer to discover "and sellers are worst." If you know me you know I always look for the good in people and I had a hard time accepting that old maximum, "buyers are liars and sellers are worst" but it’s true. The problem is not deliberate lies, but rather no common vocabulary. How’s your credit? Great! What can you afford? $350.00/month. What he meant was that his bank had never turned him down for a $2,500.00 car loan and the furniture store always finance him. The $350.00/month that was what he had left after bills and beer.

I went to the local bank and got a stack of application forms and convinced the broker to put in their first credit report machine, it was really a teletype machine, 300 lbs. of stand alone machine that required special expensive paper.

They keep their part of the bargain and I taught my associates how to read a credit report and take a credit application, and pre-qual the buyers. The results were our fall out dropped to nearly nothing, with in three months the broker put credit report machines in all 30 of his offices.

As for how the clients we simply made it a rule, we do a pre-qual or you can cross the street to one of our lessor competitors.

I don’t know about your market but we had FHA and VA from mortgage brokers and the local banks and saving and loan.

Pre-approval letters make things a lot better, but you’re suppose to be a professional. What kind of a professional advises people about their biggest investments, about life altering purchase without knowing everything about the peoples finances? I can tell you a professional taxi driver!

By the way Krystal, this was a great blog, I hope you got the bonnous points you earned them.

Like you stated, KK, I never go out without a pre-approval. I have usually talked with one of my lending partners (hopefully they were the ones doing the pre-approval!) and talked about their qualifications and pricing strategy. I personally don't think it a good idea to delve too far into their financial status. The days have changed when we did the pre-qual ourselves. I have some great lender partners more qualified than I am who can give me genuine, honest input.

G’morning Kristal, as usual, a thoughtful and interesting post. I too am reluctant to share my financial information with just anyone. I just published the “Old Men & Coffee Shops” post this morning and coincidentally, it is on a related topic.  Jay Merton

Hi Kristal, I do not want to get involved in my buyer's finances at all. I turn them over to a LO I trust and leave it at that. For me, it just makes it easier and I think the buyer prefers it that way.

We used to pre-qual our buyers but only ask basics now and send them to a LO.  I do feel that the consumer doesn't want to give out their financial information and getting a third person involved is always best.  We recently were referred to a commercial buyer that refused to give us a price range because he felt we were probing into his personal life!! We don't take buyers around until they are pre-qual - and I agree with Bill (most people don't even know what they can afford anyway)

Jeff ~ 33 days today, right?  :) I will go review your link, but I suspect I know what it says.  There are many folks out there that are playing on both sides of the fence Realtor/Lender.  It is my understanding that RESPA has some very defined rules for mortgage brokers and their duties.  I for one do not want to jump that fence and get into that pasture.  My job is representing the real estate end.  That's enough!

Jessica ~ It appears many people agree with us.

Brian ~ Well stated.  I didn't define my terms very well in my original post.  Typically I do a "mini pre-qual"  but I seldom get into loan programs very deeply.  That is for the LO to do.

Bill ~ I loved your trip down memory lane.  Funny how it doesn't seem that long ago we were all relying on a much slower system to get the same job done.  No we move at the speed of light, are we getting more done?  I don't think buyers are liars, I believe they just don't know what they want until they can know what they can have.  Thanks for the compliment.

Rich ~ True there are so many different good scenaros for buyers when it comes to loan product these days.  I just don't have the time to keep up with them. Then when I do, things change.  Oh my!  Leaving it to my Loan partner ( I love your term by the way ) makes it easier.  I specialize in finding homes, not loans.

Jay ~ What can I say, "great minds think alike."  I must go look it up Jay. Does this mean I can be an old codger with you?  :) pretty please?

Bryant ~ Ditto.  It really is about what the consumer prefers, yes?

Ines ~ Most buyers expect to have to go through some sort of process.  Of course when you get into higher price ranges many don't want to do it. They sometimes get offended.   Of course those folks spend a lot of time hiding money,so why should they tell you where it is?  :)  (This I am referring to not in a fraud way, but in a tax shelter way.)

KK - have I told you lately how much I value and appreciate you? That you take the time to respond to each and every comment speaks volumes about who and what you are. Thanks!

Rich ~ Thank you very much, I do appreciate you taking the time to tell me that.  I enjoy reading the comments and do put further thought into the different perspectives.  Thanks for stopping by Rich!

I totally agree with Rich - the two of you really take time to welcome people and to respond to every comment.  We can only aspire to be like you 2 pros.

Ines, You need not "aspire" you already are!

kk

You are too kind Kristal - I really look forward to meeting you someday soon.