The sellers requested we complete a financial disclosure form. We declined - we are preapproved and told them they could speak with the mortgage company regarding any concerns they may have about our ability to obtain financing.
We don't want them to see that we can afford more on paper and come back with a higher counter since we aren't really willing to go any higher.
Ball is still in their court so at least they didn't reject it all flat out.
i've never heard of this, what is it?
I'm actually not 100% sure. I just double checked and it was technically called a financial information sheet. I was out of the house from 6:30am-10:30 pm so didnt actually see the form and was talking with N and the email via text and email. N got the form and from what I can gather it asked lots of information about out assets and liabilities - salary, amount in savings account, etc. I guess the sellers want to make sure that we will be able to secure finanicing and the preapproval isn't enough for them.
I'm actually not 100% sure. I just double checked and it was technically called a financial information sheet. I was out of the house from 6:30am-10:30 pm so didnt actually see the form and was talking with N and the email via text and email. N got the form and from what I can gather it asked lots of information about out assets and liabilities - salary, amount in savings account, etc. I guess the sellers want to make sure that we will be able to secure finanicing and the preapproval isn't enough for them.
uh, yeah. not a chance in hell i'm handing over that information to sellers. they don't sound terribly motivated to sell.
The sellers requested we complete a financial disclosure form. We declined - we are preapproved and told them they could speak with the mortgage company regarding any concerns they may have about our ability to obtain financing.
We don't want them to see that we can afford more on paper and come back with a higher counter since we aren't really willing to go any higher.
Ball is still in their court so at least they didn't reject it all flat out.
I have to think this is a good sign.
I agree, i would not be disclosing this info pre-contract - it has no bearing on what the house is worth. Though I feel like we had to submit evidence of downpayment and stuff after we had a signed contract. I remember being a bit wtf, but our realtor said it was standard.
A friend just had to do something similar on a home they're purchasing. It didn't affect negotiations as far as them increasing their offer. The sellers just wanted to feel they knew for sure that the home was being purchased by someone who could truly afford the (older) home & any repairs that came up later. The home had been in their family forever, and they didn't want to sell it to just anyone who made an offer. I don't think they really wanted to sell, but a job took them out of the area. They also wanted to talk directly to my friend. Apparently she was worthy of their home. They close soon. The sellers have been great throughout the rest of the process.
I would only offer what I was willing to pay but if you are lowballing them, be sure you really want it.
I see no harm in putting in the offer you mentioned. The worst they can say is "no". Do you really care if they are insulted? I'd be more concerned at paying what I can afford.
The sellers requested we complete a financial disclosure form. We declined - we are preapproved and told them they could speak with the mortgage company regarding any concerns they may have about our ability to obtain financing.
We don't want them to see that we can afford more on paper and come back with a higher counter since we aren't really willing to go any higher.
Ball is still in their court so at least they didn't reject it all flat out.
I have never heard of this before. Since when is pre-approval not enough?
Another determining factor is that there is one in the next neighborhood listed for 385 - everything is very similar, except that it lacks a finished basement.
I think we were leaning more towards the second due to the price differential (which makes sense since the basement isn't finished). It's just the two of us right now and we figure we probably won't get much use out of a finished basement until any potential kiddos are five or older so we figured we'd just save the money and have it finished down the line.
And again neither house is 100%. But we've looked at a lot so far and these have been the closest.
Is it a walkout basement? If so, you may want to consider the house with the finished space. Our H is just me and H. We have a walkout basement and since it's right off the patio, we are in and out a ton during the warm weather. We also use the unfinished basement as our work out space and for storage but really want to finish it as soon as we have enough $$$.
ETA: Just saw your update. Oh well, maybe they will come back to you.
Another determining factor is that there is one in the next neighborhood listed for 385 - everything is very similar, except that it lacks a finished basement.
I think we were leaning more towards the second due to the price differential (which makes sense since the basement isn't finished). It's just the two of us right now and we figure we probably won't get much use out of a finished basement until any potential kiddos are five or older so we figured we'd just save the money and have it finished down the line.
And again neither house is 100%. But we've looked at a lot so far and these have been the closest.
Is it a walkout basement? Â If so, Â you may want to consider the house with the finished space. Our H is just me and H. We have a walkout basement and since it's right off the patio, we are in and out a ton during the warm weather. Â We also use the unfinished basement as our work out space and for storage but really want to finish it as soon as we have enough $$$.Â
ETA: Just saw your update. Â Oh well, maybe they will come back to you.
Neither are. I agree that a walk out would have been nice! Honestly it will be a little overwhelming if we get it. Going from 680 square feet to just under 3000 will be a massive change. I joke that I'm going to get lost and rotate through which bedrooms I sleep in.
Post by mccallister84 on Apr 23, 2015 15:42:21 GMT -5
They are refusing to consider the offer without the financial information sheet. It doesn't seem like they are too motivated to sell and since our offer is low I wonder if it even matters.
We will decide what to do tonight. Thoughts or suggestions appreciated.
I have never heard of sellers requiring a financial statement although I do know for some people, seeing that you are pre-approved is not enough. Happened to us. The sellers were jerks who could not believe a couple half their age could afford their home.
Good luck with your decision but I feel they are asking for too much information.
Nope. If that's how they want to behave, see ya later.
It's easy for me to say, though, since I'm not you. Negotiating as a buyer sucks. I've never sold, so negotiating as a seller probably sucks too, but as a seller, you can sell the house to anyone. As a buyer, if you don't play ball, you're not getting that particular house, so if you want it, you have to deal with those particular sellers.
But since you mentioned there's a similar one in the neighborhood, maybe moving on won't be that big of a deal for you. Good luck with whatever happens.
Post by mccallister84 on Apr 23, 2015 17:09:10 GMT -5
Well to complicate matters more our agent says he thinks they will respond favorably to the offer.
He did say he was going to require something in writing from the sellers saying they were presented with the offer if choose to walk. He thinks it's the agent not the sellers.
Well to complicate matters more our agent says he thinks they will respond favorably to the offer.
He did say he was going to require something in writing from the sellers saying they were presented with the offer if choose to walk. He thinks it's the agent not the sellers.
What does your agent think about this financial info sheet? Is it something that is normal in your market?
Well to complicate matters more our agent says he thinks they will respond favorably to the offer.
He did say he was going to require something in writing from the sellers saying they were presented with the offer if choose to walk. He thinks it's the agent not the sellers.
What does your agent think about this financial info sheet? Is it something that is normal in your market?
He seems to have some experience with it but it's definitely not normal. He agrees the pre approval should suffice - especially since it's not like there's anything confirming what we put on the form. We just have to list amounts - not provide proof - and in order to get the preapproval we had to provide tons of documentation.
What does your agent think about this financial info sheet? Is it something that is normal in your market?
He seems to have some experience with it but it's definitely not normal. He agrees the pre approval should suffice - especially since it's not like there's anything confirming what we put on the form. We just have to list amounts - not provide proof - and in order to get the preapproval we had to provide tons of documentation.
Yeah, if he says it isn't typical there, then I wouldn't do it. Good luck!
Post by EmilieMadison on Apr 23, 2015 19:05:56 GMT -5
Pass. I would NOT share financials with sellers. Your mortgage company is the only one who should be looking at this info, and they have pre-approved you already.
Do you have a pre-qual letter or a full on pre-approval for the loan contingent only on collateral signed by an underwriter of your lending company?
If the request for the financial sheet is truly a concern regarding obtaining financing a pre-qual isn't worth all that much and a pre-approval signed by an underwriter should allay their fears. Not all lending companies will provide this though.
Regardless I'd never send a completed financial worksheet to anyone other than my lender either.
Post by polarbearfans on Apr 23, 2015 22:08:29 GMT -5
We had to submit a letter from the mortgage company stating how much financing we were approved for (which always only listed the amount of our offer). I wouldn't disclose anything beyond that.
We had to submit a letter from the mortgage company stating how much financing we were approved for (which always only listed the amount of our offer). I wouldn't disclose anything beyond that.
That's what we had too--they bank asked how much we wanted to spend max, we said X and they said sounds good, and sent a letter with that amount.
We had to submit a letter from the mortgage company stating how much financing we were approved for (which always only listed the amount of our offer). I wouldn't disclose anything beyond that.
That's what we had too--they bank asked how much we wanted to spend max, we said X and they said sounds good, and sent a letter with that amount.
Those are pre-qual letters. It's a cursory look at income/assets/liabilities/credit score to reasonably state you'll qualify for a mtg of that amount.
A pre-approval letter, that again not all lenders are willing to or can provide, is almost as good as a cash offer because an underwriter has signed off on it and already approved you for the loan contingent only on the collateral (house). Maybe a pre-approval would satisfy these sellers?
Post by dancingirl21 on Apr 24, 2015 9:46:18 GMT -5
Good luck. No way would I be providing my full financial information to the seller. If they are being this crazy about the beginning steps, I can't imagine how they will be with inspection negotiations, etc.
That's what we had too--they bank asked how much we wanted to spend max, we said X and they said sounds good, and sent a letter with that amount.
Those are pre-qual letters. It's a cursory look at income/assets/liabilities/credit score to reasonably state you'll qualify for a mtg of that amount.
A pre-approval letter, that again not all lenders are willing to or can provide, is almost as good as a cash offer because an underwriter has signed off on it and already approved you for the loan contingent only on the collateral (house). Maybe a pre-approval would satisfy these sellers?
That is what we had... Our financials already run and everything was good to go as long as the house was worth that amount. We had a custom letter for every offer we made (we lost a lot of houses). No way would I ever disclose financials that would reveal we could get a loan for a lot more than we wanted to pay. We had a mortgage payment amount we felt comfortable with, and depending on city taxes, that dictated how much house we could buy.
I agree with others...if 385 is the highest you'd be willing to pay, you've got nothing to lose. It never hurts to offer! But if you're willing to pay 395, don't offer 385. You risk them not even entertaining the offer or coming into negotiations pissed which won't help your situation. IMO, you want them to know that you LOOOOOVE the home, but absolutely cannot afford the list price. If they know your max, they might be willing to meet you there, knowing that you'll love the home and take good care of it. ("Your max" is what THIS home is worth to you, not the max you're able to spend on the perfect home.)
Real estate is one giant mind game. Fun for some, a nightmare for others.
I disagree with this. It sounds very emotionally driven. It's a business transaction. Make an offer or not. None of the sellers business what you can afford or how much you love it. Same thing for them... They have a bottom line; they don't care if you love their house, they need a certain amount to walk away with. Those are my thoughts.