Question Details

Denise, Other/Just Looking in 10466

Is it illegal for a seller to force a buyer to use a specific lender in NYC?

Asked by Denise, 10466 Sat May 19, 2012

Help the community by answering this question:


As Nina says, they can ask that you get pre-approved, or perhaps that you apply with, a specific lender. (That's their assurance that you're qualified.) However, they can't force you to actually use that lender. The risk you take, of course, is that if you're approved by their lender and then rejected by another and then try to invoke the contract's financing contingency. In that case, you WERE offered financing but in effect turned it down.

Ask your Realtor for more information.

Hope that helps.
0 votes Thank Flag Link Sun May 20, 2012
Don Tepper, Real Estate Pro in Burke, VA

This is a question normally associated with foreclosure property during which the seller wants to determine up front whether or not the buyer is one they want to consider as a serious buyer with credit to support their intent.

Yes, they can request this pre-approval however, they cannot insist that you use only their lender for financing.

Best wishes,

0 votes Thank Flag Link Sun May 20, 2012
They can try but you are not forced to do so in this world!
0 votes Thank Flag Link Sun May 20, 2012
Real Estate Companies and their clients often have vendors that they prefer to use for one reason or another. Buyers are well within their rights to ask that you be pre-qualified through a particular lender. They do this because there are so many others who do not do a thorough job of vetting potential buyers and they do not want to go through the whole long process of getting ready to close only to learn that the buyer cannot get the loan. However, no one can force you to use ANY of these 'preferred vendors' including the lender.
0 votes Thank Flag Link Sun May 20, 2012
A seller can request that you get pre-approved through a specific lender but can not force you to use any particular lender for financing of your mortgage. It is your choice as to the bank that you will be financing your mortgage.
0 votes Thank Flag Link Sun May 20, 2012
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