Does Preapproval and Loan Committment from lender bind me into using that lender for closing

Profile picture for BuyerNew1
We are constructing a home possible finish in may. I am looking for preapproval.
I did a loan app with Lender associated with Builder, haven't received any GFE yet. We are free to shop for other lenders aswell. My concern here is if we go thru lender A for pre-approval and loan committment, does it make me binded to him at the end towards closing. I cannot lock for interest rate till the end, so I just want to make sure that it is possbile to switch to lender with better interest rate.
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February 08 2010 - Austin
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Answers (4)

Profile picture for Austin Texas Lender
You are definitely fee to look at other lenders and get the best deal on your financing.  Builders often do give incentives so make sure the price or does not change if you leave their financing.  In many cases if you can show you are getting a better deal somewhere else the builder will let you use the financing in the end they want to make sure that house sells immediately after completion.
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February 24 2010
Profile picture for Dallas Ft. Worth PRO
Make sure that you read your contract.  Most builders will offer you additional incentives if you were using their lender.

Naima
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February 08 2010
Profile picture for Zilluminati
No, there is no binding language in anything you will sign during the loan application, until you sign the note, at the closing table,
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February 08 2010
Profile picture for Colorado Lender
No you are not binded to that company.
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February 08 2010
 

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