Dee,

It might be that the management company only has one lender that has approved this building as a condo. It could be that no other bank is willing to lend on this particular project. Ask them if that is the case.

Did you ask the management company why? That would be the place to start.

Dear Dee:

The previous answers give you many good insights, I want to give you some more.

If the request to use a certain financing company is coming from the owner of the condo they can force you to put in an application the mortgage banker or broker of their choice. If you do not go with the program, the reality is that you will probably not get the condo because they will find a way to make it impossible for you to buy.

You always have the freedom of choice to simply walk away and not buy the condo.

If you want the condo really bad or if you are getting a fantasgreat deal, I would suggest that you a) put in a mortgage application with their financial institution, make sure you do not have to pay an application fee (you will most likely have to pay an appraisal fee and credit reporting fee but talk to the management company to see if they can pay those fees for you), and b) at the same time put in another application with a different lender of your choice as an insurance policy. For this second lender you will have to pay an appraisal fee and credit reporting fee but it is worth it because it will insure that you will be getting a competitive rate on way or another.

You should also let your attorney know you are doing this so he can make sure you are contractually allowed to do it. The seller should not have a problem with this idea because if you are denied by the second bank, the seller financial institution will be a virtual lock to get you the mortgage. Either way if you really want the place you will get it by following these instructions.

Good luck and if I can be of further assistance please let me know!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, inc.
Office: (718) 645-1665
Email: MitchellSFeldman@aol.com

Daniel,
if the seller request that any prospective buyer be pre-qualified through a specific lender, then it is very allowed and legal. HOwever, that buyer is under no obligation to use that lender, and is free to finance through whom they please. They can not be forced to use a specific lender ever, under any circumstance, however, they can be incentivized to use a specific lender; this is what builders have been doing for years.

if they are saying that they will give you something, like no down payment, or help in closing, in many states, they can

personally i think it should be illegal, as well as mls listings saying that you must prequalify with a certain fiance co

steering all the way

No one can make you do anything! If you are purchasing a condo, and the developer has a prefered lender, then they may only offer incentives if they use their lender, however, you may always choose who you go through for financing, however, you may not get the incentives. Also, condo loans are very difficult right now, so the lender that they are pushing may have a specific condo approval. I would get a competing quote, just to make sure the lender that they are pushing is in line.

It could be that financing is difficult to obtain at this point on the complex. You may want to check with other lenders.