Houses-Is this normal?

I don't post often so I'll start by saying congrats to all of the new moms!! I got caught up recently and I'm so excited to hear about John, Luke and Evan.

Here's my question: we put an offer on a house in Centereach and the owners had someone they were in contract with and it fell through b/c the people couldn't get the mortgage. Now they want us, the new potential buyers, to get pre approved through some mortgage broker they have a link with even they we already know we're going through our credit union and we have an application pending through them. This other mortgage place says he might get an answer faster and might even undercut their rate and closing costs, but I highly doubt this because it's a credit union.

Is this normal? I don't think we're paying any extra for this and he's even coming to our house but for some reason I'm bothered by it. What's wrong with our bank's ok? Please let me know what you think.

I think you should go through who you feel comfortable with. If you want to use your bank then do so. Dont feel pressured into using someone you dont want to. This is a BIG decision, and commitment.
Who will you get the better rate with??

I think it is normal for a seller to require pre-approval from a mortgage company. I don't think its normal for them to dictate who the company is. I'd be concerned that they are trying to get more information about you then they are legally entitled to, if this broker is their buddy. Also, every time you apply for a loan and someone does a credit check your credit rating goes down a bit... So getting pre-approval from multiple places can be bad for you... You should be able to compare closing costs and rates without applying. If their broker is in fact cheaper, from a reputable company, and you are confident you will be approved it may be worth the risk.

I think what Valenia said is right...but, the key word being - 'reputable company'. Most mortgage companies that are uncutting current mortgage rates are from Mom and Pop-type shops, and I for one, am not comfortable taking a loan from someone that I don't have confidence will be in business in 30 years (the life of the loan). Sooo, do what your instincts tell you.

If you do not like the way these people (sellers) want to do business on this house, than move on. Unless you absolutely LOVE this house, I wouldn't let anyone force you into doing something you don't want to do! Especially when your $$$ is concerned!

Hi Jenn! First let me tell you that we went to a mortgage broker and it would have cost us $4000 more to get a mortgage through them. they charge a fee to 'get' you the morgage. We did not (or should I say didnt think to ask - I was so confused getting a morgage that my head was spinning) ask if there was a fee beyond the application fee.

Second, you should not have to go through the sellers morgage broker. Tell them that you have a deal pending with your credit union and that you feel confident that there will be no problem with the deal.

Good Luck
Lisa

It sounds like they are looking for a prequalification letter. They should accept one from any lender. The mortgage source is totally your choice. It is not uncommon for a seller or even a broker to prequalify a buyer. Since this seller already had a problem with another potential buyer I can understand their concern. They dont want to tie the house up on a deal that wont come through.

If you have or can get a prequalification letter from your credit union you might want to show it to them and let them know that you have already decided who your lender will be.

Good Luck and congratulations on finding a house.