Question:
“Can a homeseller make me use a certain lender? I’m looking at a home and the listing agent says I have to use their lender. Isn’t that illegal?”
Answer:
I just listened to a real estate legal seminar and they discussed that very topic.
It is 100% legal for the seller to require you to use a certain lender.
If you don’t want to and can’t sway them otherwise, then your option is to not buy the house. (I know that’s not what you want to hear.)
Likewise, you could require that the seller use a certain termite company or refuse to buy the home.
It’s not unreasonable for a seller to require you to preapprove with a certain lender. Or even request or incentivize you (as some new homebuilders do) to use their lender.
But I think it’s foolish to refuse to sell unless you do. Fortunately, that’s very rare.
