Financing in 23233>Question Details

Supermonkey3…, Home Buyer in Virginia

when making an offer to purchase with a pre-approval, do I have to close with that particular lender? ie, do I have to pick a lender before offering.

Asked by Supermonkey333, Virginia Mon Sep 20, 2010

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Robert Greenblatt’s answer
In southern New Jersey, our Offer to Purchase typically accompanies a pre-qualification leter from a lender. If the offer is accepted, and an Agreement of Sale is signed, the Agreement states the terms of the loan, but not the specific lender. The buyer may use any lender they choose, and the Agreement will be contingent upon the buyer obtaining financing with terms as spelled out in the Agreement.

~Robert Greenblatt
Keller Williams, Cherry Hill NJ
1 vote Thank Flag Link Mon Sep 20, 2010
Check your contract. If you are in using our standard contracts, it clearly has a place for you to fill out the lender you intend on using and it also states that you have to obtain written permission from the seller should you want to change.

Read an offer to purchase before making any decisions. If it requires you to list your lender, shop your lenders and list a few that you are taking under consideration on your contract so you have them stated clearly and can decide after ratificatin without having to go through the seller for permission.
0 votes Thank Flag Link Thu Sep 23, 2010
many times, you might run into issues where the lender who gave the pre-approval, but during the loan application may not acept your client. I had an issue with an investor loan and issues with the HOA, and had to find a new lender.
Pre-apporval letters are given most of the time on just a credit search.
Lisa Lunger
0 votes Thank Flag Link Thu Sep 23, 2010
The only caveat that I can give you is if you ultimately do not qualify or you cannot get closed on time with the new lender for the loan. In that case a seller might demand that you go through the process with the lender whose letter you had provided with the offer that stated that you qualified for the loan. The seller or his/her agent might require a rejection from that lender in order to sign a release of contract and a release of the deposit back to you.

If you can close with the new lender, there is should be no problem at all.

Brenda Feria
Real Living Eudailey Real Estate VA
Real Living at the Beach SC
0 votes Thank Flag Link Thu Sep 23, 2010
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