Ethics Question

**Bags30** · 12-19-2008, 06:06 PM

I am in the process of negotiating a purchase. My Realtor recommended a lender that we are working with to work through financing. We may or may not use this lendor.
At one point, our agent called our lendor without our knowledge or consent and discussed our financing. She was able to obtain our maximum loan qualification from the lendor and, instead of working with us on negotiation, keeps suggesting we up our maximum qualification amount.
She said ethics rules prevent her from suggesting an amount so she suggested the exact amount of our max loan and added "ish" as a suffix so as not to violate her ethics.

This smells fishy to me. Is it ethical/legal for our agent and lendor to discuss our financial position?

**Greg** · 12-20-2008, 10:00 AM

First, never go with the first lender you talk to unless they can get you a better deal than the other lenders you talk to. Shop around and get it in writing.

Second, get another real estate agent. It is not the agents job to tell you how much to spend. Their job is to help you get the best deal on the best house in the price range you are comfortable with. If this agent had you sign an exclusive buyer agency agreement then follow the procedure to fire them. Shop around.

**LVrealestateHELP** · 12-21-2008, 10:04 PM

Don't go with a high loan amount if you are not comfortable with the new higher payments. Rates are extremely low right now so lock in a 30 yr fixed principal and interest mortgage. If you are comfortable with the new payments maybe the agent is suggesting a higher loan amount because what you are looking for is in a higher price range. Maybe the agent is just out for a higher commission. It is hard to tell with so little info. The most important thing is do not agree to a loan that you can not afford regardless of who suggests the amount. Good luck.