While recently negotiating a deal something new came up.  Something new always comes up but this I thought was timely.  So I am negotiating on a house.  We have agreed on price, closing, etc.  This is my listing.  The selling agent sends along a letter, a pre-qualification from a mortgage company.  It says that blah, blah, blah, if all is confirmed this bank will provide financing to this buyer.  The usual.

So we proceed.  All is moving along well.  I call the selling and in the course of the discussion she says oh, well they are getting their financing from a different bank.  There is no reason for you to know that.  The letter we sent means that that bank will provide financing.  It doesn't mean that the buyer has to use them.  The buyer has the right to shop their mortgage.

I say to this agent yes of course the buyer has the right to shop their mortgage but this should be disclosed and especially in this environment we find ourselves in with the banks and mortgage company's being in trouble.  I say to her that the seller has the right to know where the financing is coming from.  No, she says.  I have been doing this for over twenty years and I have never had to provide where the financing is coming from. You have a letter that says that this buyer can get financing.  That is all a pre-qualification is about.

I beg to differ with her.  Certain banks take a lot longer in their underwriting departments.  Some banks have much stricter underwriting requirements.  Some banks will require two appraisals under certain circumstances.  Banks are changing as we speak.  The seller has a right to know what will be needed down the road.  He has a right to know what to expect.  No, she says.

What do you all think?  Should all of this be disclosed by the selling agent?

Miriam Bernstein, CRS, ABR, GRI, e-Pro, SRES       
Associate Broker
Licensed in the State of New York
RE/MAX Prime Properties,
Westchester County, New York 10583
www.MiriamBernstein.com

"Content of this blog is solely my opinion"