Frustrated with my agent

[jasimae]

Ok guys...long post.  I started journey by rebuilding credit.  Scores are where they need to be and I was approved for a $10K grant and must be in contract by 12/31 or forfeit grant.  Went for pre-approval at three direct lenders.  One was a referral from agent.  Let's call her "agent's loan officer" for the sake of it.  Agent's loan officer pre-approved me in one day while I am still waiting to hear back from other two (who I found on my own).  Based upon pre-approval from agent's loan officer I went out with agent on Sunday and found home.  Asking price is $169K.  Agent was initially going to offer $152K with 6% concessions for closing but then changed offer to $160K with 6% concessions, as she told me listing agent said there is another offer on table.  I was fine with that because even if my agent would have offered list price it still was well within and below my max range.  I have $4K saved up aside from $10K grant money, which is given at closing.  Agent wants me to put my entire $4K as earnest money with contract.  I'm telling her that I'm not comfortable with doing that because that's all of my money.  What if offer is accepted and I'll need to pay for inspection and retain an attorney.  She's literally telling me that most of her clients put down 10% earnest money and that's the norm and I'm risking the deal by not even putting down that.  She knew upfront that all I had was $4K and seems to be belittling me now and saying that I'm at the bottom.  She's like "there's cash offers, there's people who put down 20%, then 10%, then 3.5% and then you are below that".  I was like WOW...did you really just say that?  I told her I'm still saving and will have at least $2,500 more by closing (I'm getting a bonus from my job in another 2 to 3 weeks), in case, but I don't have more now and am not comfortable with putting entire $4K down, especially since the house is not that much money. I could see if the house was $250K or more. I thought 1% of price of home for earnest money was the norm.  She's telling me that my offer won't be seen as strong if I don't put down as much earnest money as possible.  I'm telling her I can't pull money out my behind if I don't have it.  Now she's communicating with loan officer and now loan officer e-mailed me late last night saying same thing, which is the seller might think I'll just walk away.  I'm telling my agent "isn't that your job, to convince them how badly I want the house?"  I thought all seller's cared about was whether or not you were pre-approved and had some earnest money.  I don't mind putting down $3K earnest money, but I'm not comfortable with $4K.  Also, I thought I would get an "official" pre-approval letter from loan officer but she just said that I should find the house and she'd issue a pre-approval according to the property.  I'm like "huh"?  I thought I was given a figure to go by and a formal letter confirming that number.  I'm really frustrated with my agent and because she is obviously friendly with the loan officer they are talking outside of me and I'm not comfortable with that either.

I really want this house but I think my agent is used to working with individuals who have considerable resources, which she knows I do not.  I explained this to her and I just feel that she's pressuring me to put down more money.  I never heard of anyone putting down 10% earnest money.  I explained to her that it stands to reason that if I have a down payment assistance grant then I obviously don't have too much money to spread around.

Please give me your thoughts/advice forum.  Thanks.

[Shogun]

I think that your agent is asking too much.  Here's the deal, your agent is working for you.  You tell them what to do and they do it. They don't like it, fire them.

[S7]

+11111

[Epcot]

Sorry to hear, I would definitely look for another agent.

[Anonymous]

I am under contract now for a home priced at $185k.  Our EMD was $1k and nobody batted an eye.  I am also a licensed realtor (not currently working in the business now).  TRust me you do not need to put that much down.  IF there are cash offers on the table, it won't matter how much you put down because the seller will see the cash offer as less of a risk and go that route.   Also, while your realtor should be advising you about the process, once you say "no I am not comfortable doing that" the discussion should be over.  THis is your offer, not hers and she is to submit it the way you have asker her to.  IF it doesn't work, she should then move forward WITH you until you find a deal that works for you.  Have you signed a contract with this realtor?  If not, you can find another one who may be able to work with you but it will be hard without the actual pre-approval letter.  I suspect that your current lender wont give you the letter because you could take it and work with any agent you choose.  You do not have to go with the lendr who pre-approved you to obtain your financing.  My advice......call the other lenders you applied with to find out the status of your application and shop around for a new agent.  I hope this works out for you.

[daneatreia]

Remind the realtor and loan officer that at this point they are your employees and you are uncomfortable putting that much down, if she pushes then find another realtor. If you signed a contract with her then you can always contact her principle agent and explain what is going on and they have the power to release you from the contract, or they can assign you to another agent in their office. 

[beb86]

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@daneatreia wrote:

Remind the realtor and loan officer that at this point they are your employees and you are uncomfortable putting that much down, if she pushes then find another realtor. If you signed a contract with her then you can always contact her principle agent and explain what is going on and they have the power to release you from the contract, or they can assign you to another agent in their office. 

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+1 at the end of the day you really dont have to buy a house but they live by people selling/buying houses 

[jasimae]

Agent got back to me earlier this morning and said offer of $160K with 6% concessions was accepted.  She kept the $4K earnest deposit in because she had already submitted it to the seller late last night before she and I went back and forth about it.  She said my attorney can work that out in the contract and make it so it's only $3K.  She did formally and finally acknowledge that i don't want to put entire $4K down, only $3K.  Inspection is set for this Sunday.  The loan officer sent an approval letter for the binder and it seems to be all good.  Just waiting on money to get in my account from my mutual fund and will give earnest money this Friday with contract.

[webhopper]

I agree with shogun. If your agent doesn't do what you direct them to do; fire them. Ive bought two houses and offered 175k each.time. I did 2k earnest money each time... seems a little excessive and abnormal to do more.