Does a buyer have to close with the lender that pre-approves them?

Asked by Trulia San Jose, San Jose, CA Thu May 16, 2013

Help the community by answering this question:

+ web reference
Web reference:


Terri Vellios, Agent, Campbell, CA
Thu May 16, 2013
When a buyer submits an offer, that offer is accepted based on several items, including the choice of lenders. If it goes through without a hitch then it is probably a non issue. HOWEVER, if there are delays and change in terms, and type of loan it could be problematic.

If the Buyer is going to switch lenders it is best to get a pre-approval from the new lender and get acceptance from the Seller.
Web Reference:
1 vote
David Setti, Mortgage Broker Or Lender, Campbell, CA
Thu May 16, 2013
No, that is not a requirement of your contract.
1 vote
Robert Chome…, , San Diego, CA
Thu Sep 19, 2013
No you are free to choose any lender you want. Many times listing agents will ask buyers to pre-approve with "their" lender. You absolutely do not have to use that lender. Use who you feel most comfortable with.
0 votes
Craig Bosse, Agent, Walnut Creek, CA
Thu Sep 19, 2013
Sure don't ! You are free to shop around.
0 votes
Barb Lanis, , Naperville, IL
Fri May 17, 2013
No, you do not need to use the lender that provided your pre-approval. Apparently, something has happened to make you re-think using this lender? If you are no longer satisfied with this lender, move on quickly to the one you want to use so that there are no delays in the closing.
0 votes
Juliana Lee, Agent, Palo Alto, CA
Fri May 17, 2013
The critical issue is meeting your offer's obligations timely: removing any contingencies, getting your loan funded, etc.

Seldom would you have to use the lender who gave you pre-approval. Generally to meet your specified times you won't have time to "shop" for a lender. Your real estate agent may recommend a lender who may be better for a number of different reasons: quicker funding, have already approved the HOA, etc

Unfortunately, pre-approval doesn't guarantee the loan will be funded quickly. Your lender should be giving both you and your real estate agent honest information about what can be done and how to avoid issues.

Basic real estate mortgage information at

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650-857-1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
Web Reference:
0 votes
Bradley Wils…, Agent, San Jose, CA
Thu May 16, 2013
Many REO sellers addendum's will obligate the buyer to close with
the lender whose pre approval is provided with the offer. The buyer
would have to request the sellers approval to switch to a different
lender if bound by that contract. Otherwise you are not committed to
any lender who provides a pre approval letter.
0 votes
Lamson Dang…, Agent, San Jose, CA
Thu May 16, 2013
Again, you got the answers. No, you can use any lender you like. Please inform seller that you change the lender for a better rate or faster service or any special conditions that you knew already.
Thanks and Best wishes,

Lamson Dang
R.E. Broker and Loan Officer

If you decide to find another your rate/lender, please visit my website for more information. Thanks
Web Reference:
0 votes
Tessie Figue…, Agent, San Jose, CA
Thu May 16, 2013
No. It is not a requirement on your contract. Just be aware of your timeltable on contingency period of your contract. It is wise to have good help from your Realtor who is aware of overall timeline and knows lenders that can be recommended.

Good Luck.
0 votes
charles butt…, Agent, san jose, CA
Thu May 16, 2013

There is no requirement that the buyer close the loan with the lender that preapproves them.

However the buyer can be held liable through the loss of the buyer's deposit if the buyer's lender fails to meet the required time deadlines during the escrow.

I recommend that the buyer rely on the REALTOR who is representing him and protecting his interests for the REALTOR's recommendation of which lender to use.

Most lenders are not set up to meet the very challenging time deadlines of purchase transactions. That is one of the primary reasons why the buyer should rely on the REALTOR who represents him for a recommendation of which lender to use.

REALTORS deal with lenders on a daily basis. REALTORS know which lenders meet their commitments and obligations and which ones do not.

Thank you,
Charles Butterfield MBA
Real Estate Brokers/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address:
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more