San Francisco Real Estate - Residential

Questions a Realtor might ask you about your finances when buying a home

A reader asks:

As a first time buyer, how much information and what type of questions will a real estate agent ask me in regards to my finances?

Our reply:

A good agent can help you structure the best transaction for you if they understand how much down payment you have to work with and what payments you can afford. They will work with a loan broker to get you the best loan for your needs. For this reason, they need to know how much money you have for a down payment, if you are borrowing money from a relative or getting a gift from a relative and what your monthly income is and what payment you have to meet each month. It is also helpful to know if you expect a large bonus or raise in your job.

If you are getting a gift from a relative there is paperwork the lender must have from the relative that they gift is not to be repaid. It is very important to get this information before making an offer.

I once had a situation where a buyer told me his parents were going to give him the down payment. We went out looking for property and found a condo he loved. We made an offer with a loan contingency, but when he went to his parents they refused to give him the money. We cancelled the transaction but the sellers refused to refund his deposit (even though he had a loan contingency), and he had to hire an attorney to get his deposit refunded. In the end it cost him seveal thousand dollars because he did not have his financing in order before making the offer.

- Janis Stone

posted by SFResidence.com @ 8:20 AM