I'd say, they might be doing their clients right!!  Have you even seen some of the fly-by-night websites that will print off a "pre-approval" just because the on-line user fills in a few blanks.  Not worth the paper they're written on!

Just because it's an "offer" with a "pre-approval" doesn't make either the offer OR the pre-approval any good!  

BRAVO to the listing agent who is PROTECTING the home owner.

The expereinced buyers agent will have assessed this would be a problem from the very beginning. They would be prepared to support the PA with additional documentation showing the level of confirmation the lender has achieved in vetting this buyer. That means the lender has actually invested some effort in the beginning of the process to VERIFY what the buyer stated. If your buyer is going with an unknown or historically incompetent lender....you, as the buyers agent, should also be proactive in assuaging sellers concern regarding being damaged by a flunky lender.

As the buyers agent, you have a responsibility to vet your buyer. Vetting, unfortunately, is too often left entirely to the devices of those who created the banks of America crash we all remember. As we are extremely aware, many pre-approvals and all pre-qualifications are worthless. Unless you, the buyers agent, choose to confirm through the buyers lender that the buyers information has been verified in writing, you are setting the seller up to suffer the consequences and material lose.

If buyers agents actually did this, vetted the buyer, listing agents would have no need to overtly protect the home owner. Of course we all know you can not dictate the lender the buyers uses, but the seller and their agent CAN insist of proper vetting.

Once again, BRAVO to this listing agent.

Are you aware, that for $2,500 membership, ANYONE can gain access to 1.5 million dollars specifically for locking up real estate? That preapproval from that "never heard of you' lender could very well be a TRAP. After that purchase contract is executed, it is the SELLER who is most exposed to risk and loose in both tangible, intangible and market sensitivity categories.

  There may well be very good reason for that.....and per our legal counsel...if the Seller feels that there is reason for a lender not to be used...ie previous or known experience with not closing...an objection is in order..by the Seller...not the agent. It can of course be the agent on behalf of the Seller.

Sounds like the Seller may have been burned by accepting an offer that fell through for loan approval issues. Although the Listing Agent is trying to protect the Seller's interests, declaring the chosen Lender as being unacceptable seems pretty high handed. Of course the Seller does not have to accept the Offer and can decline for any number of non-discriminatory reasons.

I probably would not word it so directly but we all know who guides acceptance. Whether I counseled the seller to counter the buyer or give the buyer another opportunity to work with a different lender would depend on the circumstances and whether there were other "problems" with the offer. It is my job to point out all potential problems with an offer, and if I have reason to believe the lender is one of those problems, you can betcha I'm disclosing it.

Yeah! Yipee! Horray! Oh Boy! I love it! I had a Seller I counceled to counter offer a lender because he was KNOWN to fail to close the day of closing.  An Agent from my Brokerage, different office, had a fit and the Branch Manager called my Broker, who was a Partner in the Firm.  The said absolutley the Seller can ask for a different Lender, it's their home and their rules. This was 6 years ago! The Buyer did get preapproved with another Lender! They didn't like it, but they did it because they wanted that home! YES, a Seller can say NO to a specific Lender!

It is okay to ask why. Then, I would ask for the names of acceptable lenders. When you have that kind of response, there is usually a reason for it. If the parties really want to make things happen, find a way rather than an obstacle.

If you have ever had an issue with a particular lender disappearing, not taking care of business or writing a pre-approval for a buyer who should never have been approved (maybe qualified, but not approved), you understand the request.  When I see certain names come across on pre-approval letters, I advise my seller to ask that the buyer get pre-approved with a different lender.  They can use whomever they want; we just want to know that the lender the buyer has chosen has actually run credit and taken care of issues. 

I can see this happening and there are some lenders that I know are just not doing loans around here very well.  So, I actually can agree with this scenario, as long as its not based on any type of personal gain.

The statement should come from the Seller, not the agent since the contract is between the buyer and the seller.

I'd say, could you please have your Seller sign an affidavit to that affect?

In this market it is not uncommon for a listing agent to dictate in the listing that a buyer must prequal with their lender. Not absolutely have to use them, but their stamp of approval that the buyer is legitimatly qualified. I would think an agent is crossing a line to say someones lender is unacceptable. As a listing agent I have had sellers ask me about my experiences dealing with certain lenders, and I will answer them honestly, but I would never tell them not to accept an offer from one. But as agents we know the ones we prefer not to work with.

I would have your broker speak to that agent's broker, and get their facts straight.  

Up to the seller.

Present the offer - it's up to the Seller to respond

That is a surprise.

Barbara Korabel - in this seller's market, I'll have buyers go to another lender, if that is the ONLY reason...

When I am representing a buyer, I always encourage them to use a local lender instead of one online or out of the area. Beyond that they are free to choose whom they want to obtain a mortgage from. That being said when we present an offer to the listing agent and the first thing the listing agent says is that we have to be approved by their preferred lender the first question I asked them is whether or not they have written approval from their principal stating that all financed offers must have a preapproval from their specific lender. If the listing agent is unfamiliar with a local lender then I encourage them to have a conversation with the lender directly. This usually solves the problem. However I do know that my client buyers know that if they face this hurdle right from the get go it's likely that there might be some other issues during escrow. Buyers are not afraid to walk away from a property.

Absolutely acceptable. This is not a RESPA violation for the listing party to request a pre-approval through a lender that they deem to be solid, the buyer is free to use their first intended lender of choice after passing the listing party's request.

The listing party is king of the hill here like it or not.

 I am all for "representation", however, the listing agent needs to realize that they are not party to the contract and what they dictate in a listing means absolutely nothing. 

Maybe this irritates me because all my buyers are solid on financing because I make the effort to verify that they are. While a vague PQ may not be adequate, requesting a particular lender is steering and I would bet RESPA would have a problem with it. 

Would I change lenders at the request of an agent...oh hell no!

Eve

I agree with Debbie Laity - is it not acceptable to the agent, or did the seller agree with rejecting the offer via that lender?  Too many times agents start spouting off demands that they didn't even talk to their clients about.  This is always my concern with agents start verbally negotiating immediately - I know they haven't even spoken to their clients in the last 30 seconds.

As a former underwriter for a large bank I would tell you that if an offer came using them - I would certainly let my sellers know to expect huge delays.  I am not so sure I'd be comfortable demanding a particular lender..... but can certainly understand rejection of some.  

542

In the lending business that could smack of steering. And that is illegal. I appreciate the fact that the agent may be trying to protect their client's interest but the question has to be asked why. I am no longer a lender but never ran into that personally.

I would just ask the seller's Realtor what the reason was?

We all want the deal to close as fast as possible, so shortcircuiting any problems is in everyone's interest, including the buyer's.

I've never had an agent say that the my buyer's lender was unacceptable but I have had listing agents request that my buyers talk to their in-house.  I've seen it more when the purchase price is high.  I don't get insulted and I explain the reasons to my buyers and they don't seem to get insulted by it either.  If it's from my in-house or a very reputable loan officer or lender then I'll "voice" my opinion to the listing agent but very rarely does it happen where they ask the buyer's to qualify through their lender.  It is common with bank owned properties though in my area - anyway.

Is the lender not acceptable to the agent, or the seller. The agent works for the seller. I've never had this happen, but at one point recently came close. The other agent didn't say the lender was unacceptable, but she questioned me about this lender...but she's been trying to make this out of the area lender look bad through the entire transaction, when all this lender has done is work to make things happen. 

I worked at a large bank a few years back and we had an agent say they were going to put on all their future listings that offers would not be accepted if the financing was from said large bank. I could see if an agent had multiple deals fall through from a particular lender that they wouldn't want offers coming in with their pre-qualification. It would be fishy if the seller was only accepting offers from a particular lender.

whoa...

That sounds a bit fishy to me..

That response makes you shake your head. The wording more than anything needs a new delivery. 

When you have a large listing inventory, and sell the properties you know like the back of your hand, inside and out. This situation does not happen. You are the other agent, broker.

Some listing agent asking for a PA from a direct lender, is this what you mean?

They usually require additional PA from the lender of their choice.

Once, I had a counter offer asking to work with a seller's lender, and not with a credit union that my buyer preferred. Buyer did not switch, but a credit union was not able to fund him, so we did switch after all and closed.

Barbara, it is not common for a listing agent reject buyer's lender, unless the lender is not well known or has other issues.

I have never heard of such a thing!  Once you've thought you have heard it all, it's time to think again:)

It's not up to the Agent to decide that.