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Home buying reminds me of EVE

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Nov. 5th, 2009 | 12:26 pm

We put a back up offer in on a Townhouse a few days ago, and the primary buyer is asking for their second inspection extension, and still hasn't decided if the property passes inspection, and the seller is getting tired of the delays.

So as the first backup offer, my agent was offering us as a quick alternative but wants us to have a loan ready OMG right now.

I only have access to about 10% down, the randomly selected lender seems to think that a 3.5% FHA loan would be fine, even if the condo complex needs to be approved by the FHA.

My agent doesn't want to go through the FHA approval process and wants me to use a different lender to get some kind of alternate loan product that requires 5% down. The lender has no idea what type of loan she's talking about and seems to think that FHA approval is something relatively easy to obtain and the FHA loan would be fine.

I have no idea whose right, or what needs to happen next.

I'm really developing the feeling that they're all motivated strongly be self-interest and I shouldn't trust anyone involved as, to simple approximation, they're all just trying to steal my money.

(And wandering around not knowing if someone is about attack steal all your stuff is a definite part of EVE).

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Comments {3}

Josh

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from: irilyth
date: Nov. 5th, 2009 08:59 pm (UTC)
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As in most games of diplomacy, the key is in figuring out when the other players' interests align with yours, and when they don't.

Your realtor wants you to buy a house, because that's the only way they get paid; and they sort of want you to have a good experience, so that you'll use them again when you go to sell, and recommend them to your friends -- but that's all hypothetical future money, and isn't as valuable as actual money right now.

Your lender also wants you to buy a house, but doesn't have any stake in the future beyond this transaction at all (because the next time you buy a house, you're somewhat unlikely to end up using the same lender, or at least I never have the three times I've done this). So they're most interested in what makes this sale easy, and not particularly interested in what makes your life easy later... So they don't have any incentive to waste your time right now looking at loans that won't actually work to close the sale, but they also don't have much incentive to ensure that you don't look back a year from now and say "crap, why did I pick this loan instead of that one.

When two people who are nominally both on my side disagree, I like to try to get them talking to each other. (Unless I have reason to think they're at risk of colluding against me -- which is in fact a slight risk here, but if the realtor is the one who referred you to this lender, they already have plenty of opportunity to collude if that's what they want to do.) Can you get them to talk to each other, either directly or at a meeting or on a concall or e-mail thread with you, and straighten this out?

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Diane Trout

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from: alienghic
date: Nov. 5th, 2009 10:13 pm (UTC)
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In this case the agent and the lender are basically randomly selected and don't know each other. The agent seems to be trying to get me to use a lender she knows, which increases my worries about collusion.

I tried asking the agent, while CCing the lender for more information about what product she was referring to, but that didn't seem to generate any emails.

In theory I should try to schedule a conference call or something.

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Diane Trout

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from: alienghic
date: Nov. 5th, 2009 11:28 pm (UTC)
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It turns out the agents and the lender all conference called and they're all happy with the lenders loan product choice.

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