Just a note: builders can, in fact, offer incentives tied to using their lender, and it's "legal". They cannot, however, force you to use their lender if you are willing to forego the incentives offered.

Wed Jul 23 2008, 09:24

Hi Belinda,

This sounds like bad Karma - a builder cannot dictate which lender you use. Avoid using several lenders because of the negative effect this will have on your Fico score, especially in the same month.

Try to find a good Realtor who can find you the right house that you really want and not have to settle for a 2nd choice that the builder is trying to sell you.

Best,
Yona Bello

Mon Jul 21 2008, 11:35

Hi everyone. All of the comments have been right on. But I really want to point out and important fact and that is most people don't realize that even if you are buying a new home you should have a realtor represent you in the transaction. When my wife and I purchased our home a year ago, and all of the homes closed on our street, you could tell by the prices at closing who had a realtor and who didn't. Most sales reps at new subdivisions do a great job, but if you have someone new to the home buying process, they could easily miss opportunities to negotiate a better deal.

As for your situation, it concerns me that the builder should have had a better idea as to what was going on with your transaction before they released it to another buyer. If you are really sure that you want that neighborhood and style of home, then continue to look at your options with them.

Just my two cents!

Have a great day!

Mon Jul 21 2008, 10:08

As said previously, the builder cannot force you to use their lender and should not use it against you if you use an outside broker. However, they might offer you special incentives, for example a lower interest rate or other benefits by using their lender, but they should not force you to use theirs. They will "suggest" you use their lender, of course, since it benefits them.

Mon Jul 21 2008, 09:18

it is illegal to force a buyer to use a 'preferred' lender.

Sun Jul 20 2008, 21:06

You have an option for your own mortgage broker. I would talk with their loan officer determine what they state, then compare apples to apples. Don't allow allot of lenders pull your credit till you have determine all the facts http://www.lynn911.com http://www.homes-for-sale-dallas.com

Sun Jul 20 2008, 18:11

If the builder has listed the houses under an exclusive agreement, they don't have to pay cooperating brokers. Personally, with builders hanging on by a thread financially in some cases, I'd walk unless you can get someone into the equation to represent your interests. If they refuse to pay a real estate agent, get an attorney to review the builder contract before you sign it. Best of luck.

Sun Jul 20 2008, 17:58