Home Forums Real Estate Home buying FINANCIAL INFORMATION SHEET??


Real Estate January 6, 2014 at 1:36 pm



So, we are new to the area and learning about home buying. We have a Realtor(s) and have found a home we would like to submit a offer on.
I should note we are well qualified and obtained pre-approval letters from 2 local & reputable lenders. And without going into details on the forum we have a strong & reasonable offer. (No 100% financing, prior home to sell 1st or anything worrisome/ alarming.

When putting together the offer we were asked by our Realtor(s) to complete a “Financial Information Sheet.” (Never heard of this or done this for the past 4 homes in other states.) The form is asking for details about current & past employment, salary, bank saving/checking accounts, stocks/bonds. life insurance & cash surrender amount, property owned & value, and so forth.
It states on the form “This information is presented with the understanding that it may be used as a basis for the acceptance of a contract by the seller. The undersigned hereby authorizes the agent to disclose to the SELLER, SELLERS AGENT, DUAL AGENTS, INTRA-COMPANY AGENTS, COOPERATING AGENTS and Lender ALL OR ANY PORTION OF THE INFORMATION CONTAINED IN THIS FINANCIAL INFORMATION SHEET”

What the heck??? I have not found any law or legal statute stating we need this.
And did we not cover all of this with the lender when they ran our credit & looked into all of these things prior to giving us pre-approval for a loan?
Why on earth would I provide such much information in so much detail for a person &/or multi-people we do not know?? Seems like this could be a major privacy & identify theft issue. Not to mention used improperly to leverage for a higher sales price. Why does the our agent or buyer or their agent need these details? Especially when we have the pre-approval letter? It is not like the seller has not provided their financial reasons for selling!

We questioned our agent(s) and got this response: “The financial sheet is a must have in our area, the listing agent won’t presents contract without it. People often feel like they are weakening their negotiating position by showing they are well qualified. It just doesn’t work that way, showing your strength never weakens your position, it only strengthens it.

An offer here is never complete without a financial info sheet…”

So, I am wondering if other local folks have run into this?
Is a offer truly”incomplete” with out this?
Can’t we submit the offer with only on the pre-approval letter & earnest money? (and at least see what they say?)
If the Buyers agent asks for it can either walk or provide limited information?
Is it time to find a different agent?

Thanks for any local insight from those with experience on the topic.

1 Replies Add Reply

I have bought a few properties personally and also am an agent. I have done deals where Listing Agents ask for Buyers Qualifications and have done deals without. I don’t think you need a new agent because this is a typical situation that can come up. However, if I was your agent I would explain to you that we don’t “have-to” submit that sheet. I would explain that the seller is asking for it but we have the freedom to decline and present in other ways. Sometimes a large “ernest money deposit” can quell all fears the Listing Agent may have. In addition, having a quick contingency periods can also quell fears. Also a strong lender with a good local reputation can endorse you to seller’s agent. In my opinion, this is where having a good negotiator on your side makes the world of difference. It’s all about presentation and structuring a deals and most importantly building “trust” with the listing agent. Sometimes the Listing Agent has multiple identical offers and it always boils down to the deal they can trust to follow through and close. I came from the business world where I structured deals all the time and had to bid on the open market for work. I learned quickly that sellers can demand something but everything is NEGOTIABLE! I wish you good luck!

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