It was a seller's market, and we found the oh-so-perfect home for my special FTHB (first-time home buyers). There was intense competition, and the listing agent "more than suggested "that IF we used their lender, "they could make the offer work."
So we contacted her lender and got a pre-approval, and they made an application. No problem at this time; it was a reputable lender. These young buyers did some research and shopping on their own. This 'suggested' lender had a higher rate and added TWO points! My buyers were afraid they would lose their dream property. They questioned the lender and got a response to take it or leave it. We had a ratified contract, and our home inspection was scheduled and complete.
The buyers decided, after careful research, to switch lenders. When the new lender ordered the appraisal, there was a call from the listing agent. That conversation will remain private. I quoted the language in our contract, stating that all Buyers have the right to choose their lenders, title, and inspectors. The transaction did go through, and these buyers are in their dream homes.
Note: I am not suggesting that you change in the middle of a transaction. If your timing with the new lender does not coincide with the terms in your contract, you risk your earnest money deposit and possibly the transaction.
Joe Petrowsky was the inspiration for this post.
Buying or selling a home
Call Margaret Rome