Can a Preferred Lender Requirement Benefit Me?

August 30, 2022

If you’re looking to finance a home, you may come across the term “preferred lender requirement.” Here’s what that means: A preferred lender requirement is when a seller or builder requires buyers to use a specific lender to purchase a home. In some cases, the buyer may still be able to choose their own lender, but they may have to pay a higher interest rate. If you’re considering a home with a preferred lender requirement, be sure to compare rates and terms from the required lender with other lenders to make sure you’re getting the best deal possible.

When selling your home, many factors go into the process, and financing is a big one! If a seller wants to make sure the buyer works with a lender they trust to get the job done, the seller can write a contingency in the offer that requires the buyer to be pre-approved and/or work with the lender the seller has selected. Preferred lender requirements are put in place for a variety of reasons. Sometimes, the seller or builder has a financial relationship with the required lender, such as receiving kickbacks or discounts. In other cases, the preferred lender may have more experience working with the seller or builder and may be able to close the loan more quickly.

Whatever the reason or whether you are a buyer or a seller, it’s important to understand all the implications of a preferred lender requirement before signing on the dotted line.

Do you have any questions about preferred lender requirements? Your Berkshire Hathaway HomeServices Florida Properties Group forever agent can help guide you to see if this is the best fit for YOU!

Olivia is southern hospitality wrapped in compassion. She is as sweet as she is fierce and never hesitates when others ask her for help. Aside from being a mega talented writer she also takes on all of our special projects and events as our Brand Strategist. She uses the education she got from Bama {she would insert a “Roll Tide” here} to help give our clients an authentic look at who we are. She’s a larger than life, laid back bundle of joy who is as genuine as they come.
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© 2022 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal Housing Opportunity.