I wear a different hat....

Mortgage and Lending with Bank of Oregon a division of Willamette Valley Bank

I had something interesting happen recently.  Have some borrowers prequalified on a new purchase.  I received a phone call from their Real Estate Agent stating they were going to write up an offer on a property later that evening.  He needed from me a preapproval/prequal letter.   He asked me to reference the purchase price and the fact that they would be putting ten percent down in the letter.  Pretty standard stuff...no problemo.

But then he asked me to include some additional information.  He stated they were going to ask the seller to contribute to closing costs.  Again, pretty standard stuff in terms of the offer.  What was interesting however, is that he wanted me to reference that the "seller contribution" was in essense, part of the actual qualification.  In other words, the borrowers would only qualify for the loan, if the seller contributed to closing costs. In all my years of lending, I had never had that asked of me, and admittedly, the agent said he had seen only a few letters ever written like this.

After we hung up the phone I really wracked my brain trying to figure if there was some possible way for me to gently reference that in the letter, without jeopardizing anything or disclosing information I can't disclose.

Bottom line:  Negotiating with the seller is part of the contract.  Unless a loan officer also holds a Real Estate License, they can't assist with the negotiations.  I felt that by me referencing anything in terms of seller contributions could be looked upon as "me" assisting with the negotiations, which again, I'm not at liberty to do.

I drafted up my standard letter and sent it on its way, and gently reminded the agent that we wear two different hats.



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Team Honeycutt
Allen Tate - Concord, NC

Your different hats scenario is great. I totally agree with you that you should not have done what the agent asked you to do.  The agent needed to wear his Resl Estate hat to get rhe negotiating done.


Jul 26, 2011 05:54 AM #1
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Karen, I think that you handled that very well!  I agree that you handled it very well!

Jul 26, 2011 06:10 AM #2
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Morning Betty!  Thanks for your visit and taking the time to respond.  As much as I want to assist in getting an offer accepted, us loan officers just can't put our neck out there like that.  Thank you! 

Thank you Tony and Darcy for the kind words.  Very much appreciated.  Have a terrific day and all the best to you!

Jul 26, 2011 06:16 AM #3
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Karen Burket

Valley Mortgage Grou, Conventional, FHA, VA, mortgages
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