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Personal Finances / Buying or Selling a Home

URL:  https://boards.fool.com/isnt-it-illegal-or-discriminatory-on-the-part-of-17365486.aspx

Subject:  Re: Help on new construction? Date:  6/14/2002  4:38 PM
Author:  CatherineCoy Number:  43527 of 129163

Isn't it illegal or discriminatory on the part of the builder to have the buyer go through their mortgage company?

No, it's not illegal for the seller to strive to maintain control of the process so that he's not bit in the butt by some podunk lender somewhere who says that the borrower is lendable when he's not. The builder chooses a lender whose skill he can trust--not to mention getting in the pocket of said lender.

If you don't want to pay an application fee to the builder's lender because you borrow elsewhere, you can always try to "negotiate" that part out of the contract but, as you've seen, builders--these days anyway--are in the driver's seat. That's called capitalism.

Catherine Coy
Mortgage Broker
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