This is a common occurance.
Since the preferred lender will underwrite the loan they will be asking for the full monty of documentation such as pay stubs, tax returns, proof of assets etc. Their approval means they are ready to lend because you have passed their guidelines.
Bonnie Chernin and David Rogoff
Fillmore Real Estate Branch #19
2926 Avenue J
Brooklyn NY 11210
917-593-4068 â€“ David mobile
646-318-5031 â€“ Bonnie mobile
firstname.lastname@example.org â€“ E-mail
This is not an unusual request. What they are trying to do is create a funding approval that will make it difficult to back out of your agreement for the reason of not qualifying for a loan. It basically, insurance for them that will make you a much stronger buyer in their eyes.
If you are uncomfortable with this arrangement you are within your rights to "respectfully decline" and move on to another builder. This act in itself may help them see the light and think better of their request.
It may be more helpful to have the identy of another builder that doesn't use this requirement and share it with them. Keep in mind, they really don't want to lose you as a customer, however, they are seeking the best way to keep you engagued.
Our recommendation is to invest some time contacting other companies prior to taking a stand. But be assured, there's nothing that says you have to abide by their silly guidelines.
the key is to go the extra step with your lender and be pre-approved not just pre-quailified. This is when you take the step to gove your loan officer your bank statements, pay stubs and take that extra step towards quailification.
You can then ask the builder to waive their clause or worst case you have to get preqyailified through them but they cant make you use any one bank, you still have that choice.