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Mandatory to take out mortgage from builders broker

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Guest	Posted: Wed Jul 13, 2011 12:26 am    Post subject: Mandatory to take out mortgage from builders broker Like 0 Dislike 0 Hello there… well… I was at my builder’s office. I’m purchasing a home. The broker there told me that I had to take my loan from him. Is that true? It is mandatory for me to take out a loan from him?
Niicss Joined: 03 Oct 2005 Posts: 4834 Location: New Jersey 508.88 Dollars($)	Posted: Wed Jul 13, 2011 1:53 am    Post subject: Like 0 Dislike 0 It is not mandatory for you to take out a mortgage from the builder's broker. You can contact other mortgage lenders in order to get a loan. No one can force you to take out a mortgage from a particular lender. _________________ Good is the Enemy of Great.
chrisgummerson Community Expert Joined: 29 Apr 2010 Posts: 704 Location: La Palma, CA 9.98 Dollars($)	Posted: Wed Jul 13, 2011 4:40 pm    Post subject: Like 0 Dislike 0 That would be a RESPA violation of steering. Frank Dodd reform act, prohibits steering to any particular lender that will benefit the originating party. _________________ Chris Gummerson Bay Valley Mortgage Group bayvalleymortgage.com 714-367-5125
eskyvest Joined: 29 Apr 2011 Posts: 8 2.32 Dollars($)	Posted: Thu Jul 14, 2011 4:09 pm    Post subject: Like 0 Dislike 0 It is not mandatory. However, builders usually tie their incentives to their prefer lenders. For example, they would say they you welcome to use any lender but if you use their preferred lender, they can give you $5000 discount on the price or pay some of your closing costs. In my experience, what I suggest home buyers to do is to get estimate from other lenders to compare. If the interest rate is drastically difference, don't use the preferred lender. A lot of time, preferred lenders can be competitive with slightly higher interest rate and closing cost but when considering the discount, it still makes sense to go with them. Hope that help Val [External link deactivated as per forum rules. Thanks.] _________________ Mr. Val Discovering Secrets Sellers Hide - Special Guide To Newlyweds What You Must Know About Buying Your Dream Home So You Won’t Make The $10,000 Mistake www.HomeBuyerSecretsForNewlyweds.com

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