Are we obliged to buy a loan from the same company we are buying home from?

we are buying a homeand they are offering some incentives if we buy a loan from that particular company,we've not yet decided but we are getting better rates from the bank,we'll definitely shop and find out which one is better for the long term,now practically they are forcing us to get the loan from their company,is their any chances that they can deny to build the house or force us to buy that loan.Are we obliged to buy a loan from the same company we are buying home from?
no-you are not obligated. Go for the deal that gives you the best rates and longterm.Are we obliged to buy a loan from the same company we are buying home from?
Hello, you are NOT locked into going with them Per the RESPA Laws, see the link below. They may have a builders / buyers relationship with them, where they get a percentage of the deal (closing cost, etc) If that is the case than they have a ';affiliated business arrangements'; and they have to (A) a disclosure is made of the existence of such an arrangement to the person being referred and, in connection with such referral, such person is provided a written estimate of the charge or range of charges generally made by the provider to which the person is referred (i) in the case of a face-to-face referral or a referral made in writing or by electronic media, at or before the time of the referral (and compliance with this requirement in such case may be evidenced by a notation in a written, electronic, or similar system of records maintained in the regular course of business);








So, check in out to be sure. Have they given you a Good Faith Estimate as of yet? Telling you what your costs are?





The above is shown on this web site:





http://www.hud.gov/offices/hsg/sfh/res/r鈥?/a>
There is a trend now where some of the larger real estate companies and builders are offering a ';one-stop shop'; i.e. mortgage loans, Realtor and title companies all under one roof. Often, they will offer incentives such as ';X amount of dollars for closing costs if you use our loan co.'; or ';$100.00 off closing if you use our title co.'; Again, these are supposed to be incentives and not obligations. Read the fine print in any documents that you have signed with them to make sure that you didn't sign anything that stated that you were using their mortgage services, etc. If so, they would have to disclose this to you before signing the Purchase Agreement. You know, this just doesn't sound right at all. If you have a Realtor representing you in this transaction, I would be very sure that they were looking out for you in this and making sure that you have an adequate ';out'; if necessary. Read your purchase agreement again carefully. Most importantly, consult an attorney if this forceful behavior continues from this builder.They have to live up to their end of the contract, too. You should have the right as a consumer to shop around for whatever services you feel best suits your needs. At this point I've seen it all and this doesn't surprise me.
I don't believe so However the Builder may have to use Their Lender Do you have a contract if so reed it thoroughly so your not force into overpaying
No obligation. They might be violating RESPA laws. Talk to a real estate or consumer Attorney.
They cannot force you to use their mortgage company.





However, and it's a very gray area, they can build incentives into the price to use their company.





They make the incentives just big enough to make going elsewhere not cost-effective, and then stick you into a higher cost/rate loan than you could get otherwise.





Your only hope of getting the incentive and going elsewhere would be to complain to your state commerce/real estate division about unfair practices. No idea if that would work.