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carissa1643
I LOVE my sons! :)
Member since 5/09 5283 total posts
Name:
Carissa
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Is this even legal?
We put an offer on a house, the sellers countered (after 3 days) then we agreed. The seller's REA is now saying we need to be prequalified by HER bank. We sent them our preapproval letter and had our mortgage lendor speak to her bank to just appease the REA and try to move on. She said its unacceptable to use another bank and we need to use them and send over all our paperwork to them.
We can't even get past the accepted offer and terms right now. It's beyond frustrating and being pregnant I can not handle this stress at all. We've been through this a few times before, we know what the process is. We have an excellent REA representing us. We're all in shock by what her stipulations are. What I'm asking is, is this even legal to force us to use her bank? I can't understand at all how this could be allowed. We're thinking she might just be drawing out the process waiting for her own clients to make an offer so she doesn't have to split commission. We love this house in this great area and definitely don't want to walk away. We've been actively looking for 1 year now. We're ready to buy and own this house. WDYT?
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Posted 3/8/12 10:02 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
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Re: Is this even legal?
I believe if the SELLER requests this, it's legal..but not to actually use, but just to get approved.
Message edited 3/8/2012 10:18:01 PM.
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| Posted 3/8/12 10:10 PM |
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carissa1643
I LOVE my sons! :)
Member since 5/09 5283 total posts
Name:
Carissa
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Re: Is this even legal?
Posted by cncforever
I believe if the SELLER requests this, it's legal.
They have control over which bank we use????
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| Posted 3/8/12 10:13 PM |
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Re: Is this even legal?
The listing agent/seller can ask you to get a preapproval from a certain lender. The listing agent may have a relationship with a certain lender -- probably a certain loan officer -- that she trusts. And maybe she is being over cautious, but a seller's worst nightmare is going to contract, having the home off the market, relying on the fact that the sale will go through, and then finding out that the buyer can't get financing. So giving the listing agent the benefit of the doubt: She may be trying to protect the seller's interests -- which is her job -- by having her preferred, trusted mortgage guy review your qualifications.
That said, the seller and the seller's agent cannot demand that you actually USE their preferred lender. They can ask that you speak to their guy and get a preapproval from him before moving forward with your offer. But you are then free to use your original lender or whoever you want. You are not locked into using a certain lender just because you are getting a preapproval from that lender. And the seller and his agent cannot make the deal contingent on you using a particular mortgage lender.
Hope this helps! Hang in there.
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| Posted 3/8/12 10:14 PM |
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carissa1643
I LOVE my sons! :)
Member since 5/09 5283 total posts
Name:
Carissa
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Re: Is this even legal?
Posted by Century 21 Dallow - Christine Braun
The listing agent/seller can ask you to get a preapproval from a certain lender. The listing agent may have a relationship with a certain lender -- probably a certain loan officer -- that she trusts. And maybe she is being over cautious, but a seller's worst nightmare is going to contract, having the home off the market, relying on the fact that the sale will go through, and then finding out that the buyer can't get financing. So giving the listing agent the benefit of the doubt: She may be trying to protect the seller's interests -- which is her job -- by having her preferred, trusted mortgage guy review your qualifications.
That said, the seller and the seller's agent cannot demand that you actually USE their preferred lender. They can ask that you speak to their guy and get a preapproval from him before moving forward with your offer. But you are then free to use your original lender or whoever you want. You are not locked into using a certain lender just because you are getting a preapproval from that lender. And the seller and his agent cannot make the deal contingent on you using a particular mortgage lender.
Hope this helps! Hang in there.
Thank you for clarifying! I really had no idea they can hold the deal if they want a preapproval letter from a specific bank. It's extremely frustrating.
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| Posted 3/8/12 10:34 PM |
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