May a realtor ask me for a DU from my financial institution?

Question

May a realtor ask me for a DU from my financial institution? Legal?

Account Closed · Answer

desktop underwriting it is perfectly legal and is a step better then just a pre-qual letter it shows the front and back ratios of a loan good for FHA and conventional

Wayne Brooks · Answer

Also, if you want your agent to take you seriously, and you of course qualify for the financing you need, you should provide the DU, and why wouldn't you?

Wayne Brooks · Answer

As the seller's agent, I have routinely required a buyer's DU report for review, if they want their offer to get real consideration......too many of the preapprovals are just useless garbage.

Russell Brazil · Answer

What is a DU?

Account Closed · Answer

Du assures the sellers that the buyer has completed the entire loan process and when approved is assigned a case number This eliminates many last minute surprises and sellers give more credence to DU underwritten offers. Realtors love it because  helps an offer stand out in highly competive  markets A pre- qual is only as good as the loan officer who are are at best a quess. Nautrally we do not share senstive information

Michael Cohen · Answer

DU is an automated analysis of the 'red flags' your file will have, what is required to document issues, insurance requirements, and other issues. I doubt it's illegal per se, but I have a fiduciary obligation to my client's privacy and would NEVER share it with a realtor. It's none of their business. It's wildly inappropriate - or at least highly unconventional - for the realtor to have asked for it. I hope your loan officer refused.

I disagree with Account Closed that it's a step better than a pre-qual letter: acceptable ratios do not indicate there won't be other issues. Ratios are just the starting point. If you're looking for something better than a pre-qual, you want a pre-approval - Loan Officer's statement that they have reviewed all supporting documentation (W2s, paystubs, bank statements, etc. - or even a Loan Commitment. This is where an UNDERWRITER (the ultimate decision maker) has approved the buyer's income and assets.  At Movement, we call it "Upfront Underwriting" and a few lenders have something similar. It should be your ultimate goal as a buyer.

Account Closed · Answer

I wouldn't bother showing you one of my houses for sale unless I had reason to believe you could buy it. I don't like "pre qualify", I wait for "pre approved". Otherwise, why are you wasting my time?

Tanya Gills · Answer

I realize this is an old thread but had to put my thoughts into this. First, it isn't supposed to the agent, it is supposed to the seller, isn't it? And what seller really knows what DU is or how to read it? Assuming we sweep that part under the rug, what right does a "seller" have to a buyer's personal information? Secondly, what credentials does the "seller" have to question by ability? How would a realtor feel if we required his licensing info and his experience before we accepted a contract from that realtor? Really, we need to each stay in our lanes and a borrower's PERSONAL business is non of yours (or the "seller")

May a realtor ask me for a DU from my financial institution?

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