Should a Seller be able to get Credit Information on a potential buyer?

Question: My Realtor placed my offer on a house with a pre-approval and 20 percent down. The selling agent called my loan officer to ask for my FICO score, how much money I have in the bank and other personal questions so she can run the info with her seller. My loan officer did not give any info except that I am a really good, serious buyer with A+ credit. Was the listing agent out of bounds with such questions?

Answer: There's a complexity within your question that needs to be addressed.

The listing agent wants to assure that any would-be purchaser is financially qualified to buy the property. The reason is that the owner (and the agent) do not want the property tied up for weeks with a buyer who is ultimately unable to close. Such a delay might mean the loss of a qualified buyer. Also, there may be competing offers for the property so the owner will want to consider the financial strength of the bidders since it does no good to accept a high offer from someone who cannot complete the sale.

In the usual case the buyer's agent provides a financial qualification statement or a letter from a lender. Neither is an absolute guarantee of financing, but both are useful.

Even though this personal information is considered private, the seller of the transaction needs to know that their buyer has an excellent chance to close the deal. Sellers also have packing to do, movers to schedule, and a new home to buy. Remember, too many Real estate deals fall apart due to a poor prequalification of the buyer, or information the buyer failed to disclose to their lender at the time of prequalification.

What the lender told the listing Broker in your case, should be enough information for a seller to feel they have a well-qualified buyer. What the lender could also have said is that his judgment was based on your ability to put down 20 percent plus his review of your A+ credit report. In other words, the lender cannot reveal the contents of the credit report but he can at least say that his analysis is not based on fantasy.