Posted by River City on June 17, 2004 at 12:05:43:
No. The builder can offer incentives for using their lender, but they cannot require that you use a specific lender. Prior to selecting a lender, compare the prices of the builder’s lender with others in the area by obtaining a Good Faith Estimate from each of them. Compare the fees and question the differences. I find in Florida that most of the builder’s lenders are right in line with other lenders. Also, when a builder deals with a specific lender, it can make the loan go smoother because the lender is more familiar with the builder.
Now, using the builder’s closing agent is another area of concern. Sometimes closing agents of builders will not advise you of certain things that you need to know before you close. I know of this problem personally and had to take my builder to the Better Business Bureau over it. If you use the builder’s closing agent make sure you read your title binder VERY carefully before closing and if you don’t know what you are reading, hire an attorney to review it for you.