Yes - you have the right to get financing from whoever you want and will finance you or pay cash. Sometimes, when offers are presented, the seller wants you to be preapproval with their lender, but they can't make you do that. They usually just want to make sure they are not wasting time with someone who is preapproved from an unreliable lender. The only way is if you would be assuming the mortgage and that is rarely done and as far as I know never done on REO properties. If they want you to go with them - what kind of rate and fees are they offering you? But no, you don't have to do. You may want to ask them their rates and fees though and shop around. Just don't shop on the internet, get a company that is alive and well and you know them. I use Guarnteed Rate, Wells Fargo, Prospect Mortgage and Home Savings of America. I would ask your agent more questions about this so you are both on the same page.