Lender discrimination

Tweetysvoice

We put down an offer on our dream house today.. YAY!!! They have until 5pm on monday to accept it. The seller's realtor has not yet presented the offer to the sellers (according to our BA, she will tomorrow), but our BA told us that the first thing the seller's agent asked was if we could get a preapproval from another lender that was local, instead of the online lender that we chose (Quicken Loans). Can they do that? Can they base an approval on the lender that we choose? Do you think they just want another preapproval, but will still let us go with the lender we want? Anyone else ran into this? This whole process is just getting started and I'm already growing more gray hairs!

5thOfJuly

As far as I understand it, an individual can accept (or not accept) an offer for whatever reason you like.

Tweetysvoice

Yeah, I understand that. Is it right for the RA they choose to direct them to deny something just on the basis of who we choose to have a loan through. I guess I'm confused as to why it matters to them at all - they are getting there money with whomever we choose. 

lil_jen051708

They are just asking for a preapproval from another local bank.  I'd get one first thing on Monday to submit with the offer.  They aren't making you get the loan through the local bank.  I know some bank owned properties required you to be preapproved by their bank but you could get a loan from whomever. 

Tweetysvoice

Okay, that is good to know. I did just find out that our employer offers membership through a credit union, so I submitted an online application to them and will call them on monday. I'll also start calling our local bank. The only reason we didn't go that route was because the prequalifications came back with a higher interest rate than the one we choose. It's going to be hard to find one that beats 3.5%. 

TarHeels&Rebels

They absolutely can, and as a seller, it's often a good idea to.

We once got an offer when we were selling that our agent called us and said, "You got an offer and the price's not bad, but I am strongly advising you not to accept.  This lender has a horrible reputation."   And when your agent who's been working in town for 30 years tells you a lender's shady and that these people likely can't get a loan if this is who their preapproval is through and that the deal will far apart, you listen.

They may be thinking that same thing about you, "what is this online business?"  I know it'd make me raise an eyebrow and I'd want to see another preapproval.  Go with whoever you want for the actual mortgage, but as a seller, I want to know that a real live human at a brick and mortar bank thinks you're qualified, not someone hiding anonymously at the end of fiber optic cable.

SparklerSpades

This is actually pretty common. Esp now with all the shennanigans lenders were up to a few years ago - people aren't taking chances these days.

Look at it this way - they are taking their house off the market for you meaning it will be unavailable to other potential buyers. This is a risk to them and they want to make sure you're qualified, legit buyers.

Often they'll just ask you to get preapproved through a trusted lender, but you may fund the loan with lender of your choice.

Buying a home is a stressful process - hang in there!!!! 

Tweetysvoice

Thanks! We just got back from looking at the house for the third time and KNOW that this is the one. Our RA stated that they have accepted the offer contingent on us getting at least another prequalification from a local institution. Got lots of footwork to do tomorrow.