Change Is Possible

By
Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

It was a seller's market, and we found the oh-so-perfect home for my special FTHB (first-time home buyers). There was intense competition, and the listing agent "more than suggested "that IF we used their lender, "they could make  the offer work."

 So we contacted her lender and got a pre-approval, and they made an application. No problem at this time; it was a reputable lender. These young buyers did some research and shopping on their own. This 'suggested' lender had a higher rate and added TWO points! My buyers were afraid they would lose their dream property. They questioned the lender and got a response to take it or leave it. We had a ratified contract, and our home inspection was scheduled and complete.

The buyers decided, after careful research, to switch lenders. When the new lender ordered the appraisal, there was a call from the listing agent. That conversation will remain private. I quoted the language in our contract, stating that all Buyers have the right to choose their lenders, title, and inspectors. The transaction did go through, and these buyers are in their dream homes.  

Note: I am not suggesting that you change in the middle of a transaction. If your timing with the new lender does not coincide with the terms in your contract, you risk your earnest money deposit and possibly the transaction.

Joe Petrowsky was the inspiration for this post.

Buying or selling a home

Call Margaret Rome

Posted by

Margaret Rome
HomeRome Realty
Broker/Owner/Realtor®

Baltimore, Maryland


Sell Your Home With Margaret Rome

Radio Host ALL ABOUT REAL ESTATE
Sundays 12 noon.

Author: Real Estate The Rome Way

About me
My blog
My website
My radio podcasts

(410) 530-2400
CALL OR TEXT

EMAIL ME

Comments (15)

Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

What an interesting story, Margaret Rome Baltimore 410-530-2400 .  Our forms in Oregon require the seller okaying the buyer's switch to a new lender. But in this scenario, it doesn't appear that the listing agent was operating above board.

Aug 09, 2022 04:35 PM
Margaret Rome Baltimore 410-530-2400

Lynnea, I would like to see the language in your Oregon forms. Care to share?

Aug 09, 2022 10:07 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I've had similar experiences with transactions in the past.  I always hate when I see a seller interject their preferred lender into contracts.  

Aug 09, 2022 08:36 PM
Margaret Rome Baltimore 410-530-2400

Myrl, Had the lender been competitive, there would have been no need for the buyers to try another. 

Aug 09, 2022 10:11 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Margaret, on having this blog FEATURED in the Old Farts Club group!  

Aug 09, 2022 08:52 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Myrl, Thank you so much. Appreciate your Old Farts Group, and try to get my post on the radar.

Aug 09, 2022 10:15 PM
Roy Kelley
Retired - Gaithersburg, MD

Home buyers are in very good hands when they use your professional real estate services.

Aug 10, 2022 04:49 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

I had buyer clients once who switched their mortgage company in the middle due to totally unprofessional service from the mortgage company (missed dates, no call backs, no explanations, etc). I don't think they would have ever closed with the first one, but the second one was great.

Aug 10, 2022 04:56 AM
Margaret Rome Baltimore 410-530-2400

Kat, When you see this happening, someone has to step in. Your buyers were lucky to have you overseeing the transaction.

Aug 10, 2022 09:50 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Margaret... here in North Carolina a contract is not contingent on a buyer's ability to get financing. It says so in big bold letters. So it's really up to the buyer to get it all organized within the due diligence period and if it doesn't get done and the buyer can't purchase without financing, they lose their due diligence deposit, which these days is pretty substantial.

Aug 10, 2022 05:17 AM
Nina Hollander, Broker

Margaret Rome Baltimore 410-530-2400 hi Margaret... yes... we do all the financing options, VA, FHA, USDA, etc. it's just that if a buyer wants to get out of the contract they have to do it before end of due diligence period or they forfeit their dd fee. They can't come back after the end of due diligence and say they can't get financing and get out of the contract... at that point they are in breach of contract and also lose their earnest money.

Aug 10, 2022 12:51 PM
Margaret Rome Baltimore 410-530-2400

Interesting that you have no financing contingencies in NC? Do you not accept VA and FHA? Would like to know more.

Aug 10, 2022 09:53 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Margaret,
Is blackmail even legal? Isn't that kind of strong-arming against the Code of Ethics? I do understand that agents get away with a lot in a tight market, but that doesn't make it right.

Aug 10, 2022 08:33 AM
Margaret Rome Baltimore 410-530-2400

It was so good talking with you this morning, Carol. 

Aug 10, 2022 09:55 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Any change in financing terms after our contract is ratified, would need the seller's approval. That does not mean that buyers get the seller's approval. 

Our contract spells out the rate and terms. We require a lender approval letter and proof of funds to be submitted with offers. 

I would take issue with the manner in which the listing agent conducted herself. 

Aug 10, 2022 08:45 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

FEATURED IN CRAP-TACULAR

 

Mr. Crappy Says

Flush Charging 2 Points!  

💩💩

💩

 

 

Aug 10, 2022 08:47 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Kathleen Daniels, Probate & Trust Specialist We have an ALTERNATE FINANCING clause as long as it does not increase the costs to the sellers and the dates, of course, are met.

 

Aug 10, 2022 10:01 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Thanks for the Mr. Crappy Feature.

Interesting how different things are in Maryland, NC Nina Hollander, Broker, and yours in Ca. 

Aug 10, 2022 10:03 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Margaret I hope this Realtor and Lender get reported to the CFPB.  If there are any kick backs/referral fees they shut the Lender down in a blink of an eye.

Aug 10, 2022 04:01 PM
Margaret Rome Baltimore 410-530-2400

George, It's been a while since this happened. Thankful that the new lender got it done for less. The buyers are in their dream home.

Aug 20, 2022 04:06 PM
Aura Alex
CloseMyDeal, LLC - Seattle, WA
Need A TC? Virtual TC Services Nationwide

Hi, Margaret. I'm with Kathleen Daniels, Probate & Trust Specialist 

Here's my two-cent thought: I buy and sell investment properties (primarily residential); when I'm the seller, I want to see the buyer with a lender's pre-approved letter and proof of funds. 

As a buyer, I provide the said documents with all my offers. 

Aug 20, 2022 10:35 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Aura Alex, And you, my dear, do it the right way!

Aug 20, 2022 04:11 PM