Financing in Allentown>Question Details

Mars1969, Home Buyer in Allentown, PA

Can a realtor tell me what lender i have to use.?

Asked by Mars1969, Allentown, PA Thu Aug 13, 2009

I am trying to purchase an investment property in FL, I live in PA. I recently refinanced my house so my mortgage payments are lower, which makes my DTI lower (this is what the broker I used told me in PA). I went to FL to look at the house, the real estate agent said the pre-approval that I got from the PA broker was no good, and that i have to get pre-approved with one of their lenders in order to buy the house. Is this true, or can I use the broker that I had in PA (which I really like and trust)?

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No fiind a new agent
0 votes Thank Flag Link Fri Aug 14, 2009
The Lender must be licensed in the State of Florida, The Realtor can insist that you are prequalified by their Mortage Company, but you have the right to choose a mortgage representative.
0 votes Thank Flag Link Fri Aug 14, 2009
In PA, a real estate licensee cannot force you to use a particular lender though they can make recommendation(s) to which lender you use.

In PA, a seller can insist that you be pre-approved by a lender of their choice. I've had this happen sometimes when a buyer client purchased a bank-owned foreclosed property.

Also, in PA, buyers specify what lender they will use in the agreement of sale and the seller can reject your offer on that basis. It's a slippery slope for the seller to insist on specific lender but they also can make recommendations of which lender would be acceptable to them.

I hope that helps, Good luck in Florida - There are some bargains down there.

Joe Sheehan
RE/Max Professional Realty, Inc.
Exton PA
Office (610) 363-8444
Direct: (610) 363-4095
0 votes Thank Flag Link Fri Aug 14, 2009
For a Realtor to say you can only buy the house if you use their lender is ridiculous and I am sure illegal. I can understand them wanting you to be prequalified by a local lender but you have the right to use whoever YOU choose as YOUR mortgage provider. If your Broker is with a national Co. I don't see the problem.
0 votes Thank Flag Link Fri Aug 14, 2009
You should really use a lender which is local to the area of the property. They will usually use local appraisers and the process should be quicker. And if things go smoother, then you'll have a smoother closing. Although the "you can only use THEIR lender" part is absolutely false as Sean said.

I think they are just trying to try something with you.

My two cents.

Terrence Charest
0 votes Thank Flag Link Thu Aug 13, 2009
No he should not be saying that. Ask him why is this true?
0 votes Thank Flag Link Thu Aug 13, 2009
Yes, he is licensed in FL, I forgot to put that. My problem is the realtor told me I cant buy the house unless I use their lender. Is this true?
0 votes Thank Flag Link Thu Aug 13, 2009
Who is your PA lender by the way? You could always find a PA lender who can do FL, this way you can meet them in person up here.

Sean Dawes
0 votes Thank Flag Link Thu Aug 13, 2009
As Sean stated some mortgage brokers are not licensed in other states. You Pa. lender be able to tell you if he/she can assist you in Fl. As in Pa. we Realtors are a little wary of using out of state lenders. If your Mortgage Broker is able to assist you in Fl., I would suggest you get qualified with a Fl. lender which will satisfy your Fl. Realtor but use your Pa. Broker. If your Pa. Broker cannot do the Fl. loan, perhaps he/she can recommend someone in that area of Fl. to assist you with your loan. Good luck!
0 votes Thank Flag Link Thu Aug 13, 2009
Can that broker do transactions in Fl? Some cannot. For example, my lender can only do eastern coast down south to a certain point then needs to refer it out.

Are they opposed to you using another Fl broker? Just seeing which issue it is

Sean Dawes
0 votes Thank Flag Link Thu Aug 13, 2009
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