The National Association of Realtors reported that 16% of the pending sales in June were cancelled. Some large title companies report as many as 30% of their title orders are not closing. Either number should cause a seller to be concerned.
About the seller not accepting your offer, I have always been told a seller can reject any offer that is not full price and all cash. If the seller is agreeing to pay some of the buyerâ€™s closing cost they certainly have the right to be choosy about the lender. In your case you indicate all they ask is that you listen to their lenderâ€™s presentation, in my book that is not out of line. I believe all sellers should require a second look by the lender they trust. Otherwise, they risk tying up their home with a buyer that has a 16 to 30% of not closing.
I can't blame them; they want to keep the loan in-house.
Just talk to them, can't hurt and you will another set of numbers to compare to. Be sure to get a GFE.
Good luck and may God bless
Maybe they're not arm-twisting as much as asking for that second opinion from someone they trust.
It certainly cannot hurt you at all to spend a few minutes reviewing your qualifications with their preferred mortgage professional. If a credit report is run for mortgage purposes, you won't experience any effect on your credit scores, so there's no harm to you in this second conversation.
And who knows? You may find you like the Seller's mortgage professional better than the person you're working with.
Trevor Curran NMLS #40140
The seller can decide not to sell to you because you have a dog. Or because you drive a Ford. Or, yes, because you won't use a specified lender.
The reason is simple: The sellers want the deal to go through. They have faith in their lender's ability to close a deal. They're not as confident about other lenders. And they've got some basis for concern: Lots of buyers are finding lenders on the Internet. The lenders may be thousands of miles away, with no knowledge of your area and little experience with your type of property. Online lenders often promise really attractive rates, then sometimes end up not delivering on them. And there's no accountability--that other lender can only be reached through some 800-number.
Having said that, of course there are good online lenders. And there are plenty of good local lenders, too. Were the sellers wise to reject (or consider rejecting) your offer just because you aren't using their specified lender? Maybe not. But it's their right.
Beyond that, I'm not sure it was wise for you to decline to listen to the presentation from their mortgage person. It's possible that their lender was offering competitive rates and high-quality service. I'd have at least listened. Then, I'd have made a decision. But the sellers may have interpreted your refusal to even listen as being "not serious." You ought to choose the best lender for you. But that means considering different lenders and then choosing.
Advice: Ask your Realtor's opinion. Ask your Realtor whether you should say: "We'll be glad to listen to your lender's presentation. But we reserve the right to select the lender who we believe will best serve our needs."
Hope that helps.