A client of mine is about to sign a contract to purchase a spec home. Nothing unusual here. The builder requires the client to use one of their three lenders to receive a large 'incentive discount'. The lenders are not 'in house', ie the builder doesn't make any additional monies from the loan. They are large, reputable lenders that I have dealt with before. I told my client to get Good Faith Estimates (GFE's) from all three, but to NOT have them all run his credit. Have them assume his credit is excellent. Why have a bunch of credit inquiries right before purchasing a home?
Guess what? The first two lenders had no issues with this. Provided standard GFEs with all the bells and whistles. The third lender refuses to provide anything in writing without running my client's credit! He's adamant about this as well!
Now, I have had many clients get GFE's without submitting to a credit report up front. I have gotten many GFEs for my investment properties in the past. NO CREDIT REPORT NEEDED for said GFEs. How else can we/our clients shop around and compare the products that different lenders have without all the details? Here, we have a lender (very large bank) who refuses to provide the GFE without running credit....
Is this common? Are there lots of lenders out there like this? If so, I sure haven't encountered too many of them....
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