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Thread: Scam or just unprofessional?

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    Featured Member wish's Avatar
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    Default Scam or just unprofessional?

    I don't know if this is unprofessional or just a selling tactic but I am pissed. So I've been doing some research on buying my first home. Before I started my research I contacted a realtor (listing agent) listed on a home I liked. I told him I would be taking some first home owners classes and wanted to wait until after the class to purchase because sometimes they give grants. He said that was fine but wanted to PREqualify me just to see if I was a candidate for a home. So I contact the mortgage company he tells me to. This agent is from a reputable agency that everyone has heard of before so I trusted him. Any way when I talk to the loan company he tells me while I'm providing my info that he's qualifying me for a loan. I said I don't know if that's right. I don't want a loan I haven't even seen the home in person yet. Thank god I have a security block on my credit report so he couldn't access it. Tonight I was just curious to see if the home was still available... It was sold in October... I called them in February. Smh.

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    Default Re: Scam or just unprofessional?

    Prequalifying for a house before you look at houses isn't uncommon. I had realtors refuse to even show me my house because I didn't want to do it. My best friend just sold his house and it was the same deal with his buyer. Realtors have a similar deal to dancers that they only get paid if they sell a house, so they don't want to spend a ton of time on someone who can't get financing. They also don't want to waste time showing you houses that are out of your price range.

    MLS sires are notorious for not being updated. Mine was listed as available (not even pending) for two weeks after I closed. A couple actually came by and started asking me questions about it. Totally creepy.

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    Default Re: Scam or just unprofessional?

    This is completely normal ! Good realtors prequalify most buyers before investing too much energy / time. It can seem strange the first time you buy but it's standard!

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    Default Re: Scam or just unprofessional?

    Thank you. I was just concerned because of the 6 month time period and not so much the realtor but the loan officer not prequalifing me but trying to write me a loan before I saw the house. He was trying to talk me out of going to the home buying class saying it would take too long and the house would be gone and asked if I wanted to try 100% financing. I know he wanted to sell the home but it was almost at any cost without regard to me.

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    Default Re: Scam or just unprofessional?

    Yes, Ive also had realtors reject me for not having a loan approval first before showing me houses but I've never heard of this grant you can get from first time home owners classes, can you take these in all states? Im getting my first investment house (in the process now) it was only 3k so I can pay for that but a grant to fix it up or a low rate loan at least would be nice.

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    Featured Member wish's Avatar
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    Default Re: Scam or just unprofessional?

    I don't know that all states have these programs. Check your local state housing authority.

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    Default Re: Scam or just unprofessional?

    No one is looking out for you. That is your job.

    Loan officers are on a commission. The loan is a product they sell. They want to sell you the biggest loan they can. They do not want you doing anything that might cause it to take longer to make the sale.

    The real estate agent is normally on a commission and represents the owner of the house. The house is a product they sell. They want it to sell for as much as possible. They do not want anything to delay the sale.

    One thing you can do is contact a real estate agent and have him work for you as a Buyers Agent. You must get this in writing – there should be a standard form – and you will have to pay him.

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    Default Re: Scam or just unprofessional?

    Quote Originally Posted by wish View Post
    Thank you. I was just concerned because of the 6 month time period and not so much the realtor but the loan officer not prequalifing me but trying to write me a loan before I saw the house. He was trying to talk me out of going to the home buying class saying it would take too long and the house would be gone and asked if I wanted to try 100% financing. I know he wanted to sell the home but it was almost at any cost without regard to me.
    This is a problem and one that I dealt with. The sellers agent recommended a mortgage broker who was a complete douche. I also had a really bad experience WAY back in the day, where a mortgage broker tried to talk us into a million dollar ARM mortgage that my ex could never afford. I ended up going directly through Wells Fargo instead.

    You definitely should get a buyer's agent and try to deal with a bank you already have history with. It's a hard process but it's easier and more secure to just deal directly with the bank. And with a realtor you're paying to care about you. There shouldn't be an upfront cost, as a chunk of the closing costs include their fees.

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    Default Re: Scam or just unprofessional?

    ^ Yes, get a buyers agent! Otherwise the agents you call will try REALLY HARD to " double side " a deal. This means they will push you to see their listings ( usually ) and lag on showing you all that's available . They are trying to earn the commission on both the buy and sell side.

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    Default Re: Scam or just unprofessional?

    The mortgage person he / she referred is most likely a buddy or they have a mutual referral relationship. Like others have said, get your own. This is a huge decision. Don't work with anyone you aren't comfortable with!

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    Default Re: Scam or just unprofessional?

    I was a loan officer (a good one) for a few years and I've worked with realtors- they suck. 8/10 times they give zero fucks about anyone except themselves. If they think they can get tons of business from you they'll be nice, otherwise, they'll pressure you to hurry up and buy or sell with them. And they're notorious for trying to get both buying and selling commissions. They will also refer you to loan officers who give them the biggest kickback or who can make the deal go through no matter what. I didn't rip people off and I had many realtors pass me over for the next guy who'd give em 10k kickback (on top of their 30k+ commission). I wasn't even making 10K per deal... So yeah I'm jaded. Most of the time they don't even know how the loan process works and honestly, they don't care either.


    Go to your classes, get whatever grants you can. They should also help you find a reputable lender to get prequalified with.

    A loan officer broker shops your loan to multiple banks/ institutions and then tells you about the best deal they found... however what they don't have to tell you is that they added points on the back meaning they're getting extra commission. It is much harder to do this when dealing directly with the lender because the employees don't have the same freedom to doctor up the loans.

    If you want to go look at a property tell the realtor/agent you're already prequalified and you're just looking (best to go to open houses since they've already set aside time for lookie loos). Don't tell them you're a first-time buyer until you know for sure that you've found a property you want. New buyers = suckers who can be manipulated for max profit (buying & selling commish + loan officer kickback).

    A buying agent will make a commission for helping you, but they'll do the dirty work of dealing with other agents and finding properties within your budget and location. Either way, remember that they aren't getting paid until you buy and close on some property. They will try to rush you. The lender usually has a closing deadline (for whatever month) so they can meet their goals. But don't let the realtor try to pressure you and if you feel uncomfortable let them know.

    If you have any questions, feel free to pm me.

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    Default Re: Scam or just unprofessional?

    So look up loan rates on quicken loans but don't use them to buy go directly to that bank? @ AnoniCat

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    Default Re: Scam or just unprofessional?

    You need a buyer's agent. The agent who listed the house is not a buyer's agent. (S)he works for the owner of the house, and the owner is who pays her the commission. She doesn't have your interests in mind since she represents the seller.

    The buyers agent may or may not be paid by the buyer. In my region, the buyers agent is paid out of escrow from an agreed upon amount that was determined by the sales contract. This amount will usually come out of your down payment or the tacked onto the mortgage. It depends on what is standard in your region, and will vary. Your Realtor (buyers agent) doesn't get paid until after you get the deed to your home. Keep in mind that they are giving you their time with the understanding that you intend to use them to help with your purchase. It's considered to be bad manners to use one Realtor in the pre-sales work and then use another when you find the place you want to write an offer. If the first Realtor is serious about helping you, she will ask that you sign a contract with her before getting too deep into the process. (the contract isn't water tight. if the realtor is not doing her job, there are ways that you can fire her.)

    We (Realtors) have the same kind of business model that strippers use. We aren't paid by the agency, we are paid by our customers in the form of a commission. We have to cover all of our expenses, plus pay the agency 50% of our commission for the pleasure of working there.

    I am a Realtor, and like to meet with 1st time home buyers as far in advance of buying a home as possible. I can steer them away from scammy situations like the one you described. I have lender partners who help my clients through the process and who I've vetted for the protection of my clients. Not all lenders are equal, some are good and some are lazy and some are unreasonably expensive. Your realtor will help you avoid the pitfalls and scams.

    Most people know 3-4 Realtors in their personal circle of friends. If you aren't comfortable working with someone who knows you or your family for privacy reasons, check out the forums on Zillow or RedFin or Trulia or a local real estate website. Reading the posts of local realtors will give you an idea if you'd like working with that person or not. As a 1st time home buyer, don't worry about if the Realtor is a top seller or Million-Dollar agent. In fact, this type of person is not well suited to help a 1st time home buyer. The most important thing when finding a Realtor is that they take the time to listen and have the connections to help you with other professionals you'll need during the home buying process.

    OK, 2 more things to think about:

    1. Avoid fixer upper homes. Unless you have extensive construction experience, a fixer is a terrible option for a 1st time home buyer.
    2. Condos and Townhouses require special knowledge. If you are looking for a Condo or Townhome, ask your agent how comfortable she is with this kind of transaction. Everything is different from a house to a condo when it comes to the transaction, lending, inspections, deeds, insurance, and potential resale issues.

    Sorry for the novel length answer. I just want to put you in a position to successfully find your first house!

    And one last thing: This is going to be harder, more expensive, and take longer then what everyone tells you. There is no such thing as a perfectly smooth transaction. Be ready for shit to go sideways on the way to home ownership.

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    Default Re: Scam or just unprofessional?

    I've finished my classes. Now I need to get on a budget and stick to it. I also have to pay the state of Virginia they're $1400 this year. Smdh. I meet with my housing coach in May. She'll go over my budget and any debt I may have at that time. They don't make suggestions on which companies to use for the loan or realtors or closing agencies or anything. I appreciate the info because these are people I have to find myself.

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