Help!!! could i get int some serious trouble here??

Question

Well, today a realtor and I went to see some houses in Dallas Texas. After that I went to her office, to make an offer to a house in foreclosure. Do I have to pay to make an offer? I also asked for a loan from ReMax. The realtor asked me to pay $1,000 to submit a loan application, for $75,510. If i wasnt approved, then I would get my money back, but how long to wait for those $1,000 to come back? I didnt had a check, but I am to send proof of payment tomorrow. However,he asked me to sign a contract, and I did. I don't know now, is he trying to tie me to him or is it a procedure all realtors follow so realtors out there.... is this the corect procedure or i am being tricked on???

Answer 1

They have you put down money so they know you are serious.  and yeah that is their way of sinking their claws into ya.  Good Luck with the Purchase

Answer 2

When my husband and I got approved for a loan in Dallas, TX a few years ago we never paid a dime to our realtor or loan processor. This does sound like a good way to guarantee your business B/C you're not gonna ditch him as a realtor, you'll be back to get your money. HaHa.

Answer 3

Of course they are trying to tie you to the deal. It's called earnest money. If people didn't put something down to show they were serious they'd have contracts on dozens of houses.

You don't seem to have a clue how this works. This is the first step of many, many even more complicated concepts. Go to the library and find something like "Idiots Guide to Buying a House."

People who don't know what they are doing should rent until they learn.

Answer 4

RE offers & Mortgage applications are separate.  It sounds like this is a loan application fee.

When making an offer in PA & NJ it is customary to write a good faith check that you get back if the offer is rejected, and gets applied to down payment if accepted.  This money is held in escroll by the RE Broker.  This is to prove to the seller you are a serious about purchasing the property.

You do not need to submit a loan application to make an offer.  I am not familiar with Texas RE laws, but I am pretty sure this is universal in the US.  Also a licensed Realtor is legally obligated to present all offers period.

As far as the RE Broker collecting this fee, he is probably passing onto a mortgage broker. He  can be doing this because his company has ties to the mortgage brokarage (evening owning it) and would recieve monetary benefits from it.  In our area, such information much be disclosed and a disclosure statement signed.

He could be helping facilitate a loan so the deal does not fall through and he loses his commision.  A lot of RE Brokers have close ties to mortgage brokers and loan officers.  It is in their best interest for you to close on the property, and are often helpful in obtaining credit so you can close.  And since they are doing it for themselves and since it is easier to get loans with less favaorable terms, you can sometimes do better by finding your own mortgage.

I generally stay away from mortgage brokers that charge a fee, but have successfully used them.  Their fee is negotiable, and sometimes you can get it waived.