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Buyer Must Cross Qualify With Bank Of America, Chase, Wells Fargo etc.

By
Real Estate Agent with Allison James Estates & Homes 01079287

Well today was a first for me. My buyer absolutely refuses to cross qual with Bank Of America or any other lender for that matter. She has shared her information with one lender and that's that. End of story. I understand BAC wants to know for sure she is qualified to complete a transaction. And I do ask my buyers to check GFE from at least two lenders to get the best loan deal out there. But not this buyer. 

It really is ridiculous to have to cross qual on the bank owned properties. I had asked for a buyer to cross qual on a listing I have to be sure they can complete the deal and they also refused. Their lender did call me to guaranty they can complete the transaction. And honestly I am good with it. There are no kick backs to the RE agent from lenders, but I also have lenders I know can do the deal and get it closed. 

Maybe the banks, now in the selling side of Real Estate should back off and stop forcing people to cross qualify? I wouldn't want my information out there on the Internet either, With identity theft rampant. But then again the differences in the bottom line for lender fees varies greatly. 

The best deals I have seen is with Credit Unions, but they also do not get into FHA or VA loan. Conventional 5% down with MI. So that pretty much means a loan from the Big Three. Loan Brokers charge higher fees, not as high as Hard Money Loans 12% with 50% down. Talk about price gouging! 

So maybe if the Realtors made a big enough stink the Big Three would back off. 

 

That's my rant for the week. Happy Closings to all!

Posted by

Realtor simple guideline to guesstimate a Homes values! Comparing apples with oranges? How to set values for embellishments? Do you think the old adage of Value equals Location, Location, Location, is true? Views, Pools, special interest additions can add desirability, and then Granite Counters, Travertine flooring, condition, square footage and any embellishments, upgrades, updates you can add to a property is worth 60-70% of the cost. This value will also be depreciated over time. Example would you consider if a twenty year old solid oak cabinette's
value even in good condition is equal in value to cabinets in the newer current color, or are they? Objective would be desirability.

Location is the basis for value. Like Homes within a one mile radius share values, and can be evaluated by sales per square foot within the last 3+ months. Pulses

Comments(3)

Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Tere, I agree, banks that own properties should not be allowed to insist that potential buyers qualify through their system. Providing a pre-qualification letter and buyers financial should be enough for the banks, it is for owners, so why not the banks?

Feb 02, 2012 05:48 AM
Jason Geary
First American Title - Highland, CA

Seems like common practice now, even for many standard/short sales.  Thanks for sharing Tere!

Feb 03, 2012 02:59 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Tere, can't blame your buyers. On my listings I do not ask for cross-qual. If buyers refuse to cross-qual then banks will have to let up on that requirement. 

Feb 05, 2012 03:51 PM