So one of your trusted and most valuable loan officers refers a prospective home buyer to you who has a few issues with their credit...The loan officer has sent plenty of business your way and you have sent plenty to them as well and as a result you have developed a very good relationship with them..you and the loan officer go three, four, even fivemonths working with the credit challenged home buyer keeping them motivated, following up with them weekly to make sure they are paying off bad debts, contacting their debtors and getting proof of satisfied debts. They finally are in a position to start seriously looking and the loan officer issues them a pre-approval letter. So you jump in the car, look at few resales and end up at a new construction community looking at an inventory property that meets all their criteria almost perfectly. You walk into the sales office, shake hands with the on-site agent and sit down to write up an offer. The on-site agent then starts to dangle incentive carrots in the face of the buyer who has worked so hard and developed trust with their own loan officer who has equipped them with a pre-approval letter so that they can possible find their way to a better quality of life. The large builder then tells the buyer that they can only receive the generous incentives if they use their "preferred lender."
In my opinion, I feel that larger builders feel they can strong arm buyers into using their lenders with whom they have a working business relationship. I think it should be about the buyer and their level of comfort going into one of the biggest decisions they will make and have worked so hard for. Especially if they are working with a reputable lender(even bank) that has given them a strong pre-approval, spent countless hours guiding them through the process and developing a deep level of trust.
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