Can the seller of the house make you get approved again?

Although this is not typical -- it is not unusual either. There are Lenders that issue pre qualifications for Buyers who may not really qualify once the financing is applied for. Asking for a pre approval from a trusted Lender is assurance to the Seller(s) that the letter that you received is accurate. Please also remember -- the Selling agent represents the Seller(s) and any requests that they make to you (if you are not represented by a Buyers agent) or to your Agent who is relaying to you -- is conveying the Sellers wishes. (Builders often ask Buyers to use their approved Lender if they want special incentives.) From your questions -- I am wondering if there are special circumstances that are in play here. Verify with Lender #2 that their approval check will not negatively affect your credit. Another thing to think about is that you should rate/term shop your financing. Maybe this second lender will be able to offer you a better financing program, rate, terms, etc. If not, then you know that your initial Lender is the route to go.

First off, yes, the seller’s agent can request that you get pre-approved with their chosen lender, but it’s not a legal requirement, and you’re not obligated to comply. It’s a tactic some agents use to verify your financial strength, especially in a competitive market or if they’re skeptical about your current pre-approval. Since you’ve already got a pre-approval from February and shared financial statements, their push for another lender’s approval—complete with bank statements, W-2s, and paystubs—sounds like overkill. Plus, asking for this before accepting your offer is unusual and can feel like they’re testing your commitment or fishing for reasons to favor another buyer. The good news? You were told it’s a soft credit check, which won’t ding your credit score (unlike a hard inquiry, which can drop it a few points). Soft checks are just a quick peek at your credit, often used to confirm your pre-approval without impacting your score. But here’s the catch: if the new lender is asking for detailed documents like W-2s and paystubs, it sounds like they’re gearing up for a full pre-approval process, which could involve a hard inquiry if you proceed to a formal application. That’s something to clarify ASAP to protect your credit. Here’s why this might be happening: The seller’s agent may not trust your current lender or wants a lender they know (and possibly work with regularly) to confirm you can close the deal. This is more common in hot markets like San Diego (tying to your earlier interest in California), where sellers want certainty. They’re using the demand to gauge how serious or flexible you are, especially since your offer is contingent on selling your current home (from your prior question). They might be trying to push you toward their lender for a kickback or smoother transaction, which isn’t necessarily in your best interest. Is this allowed? Technically, yes—they can make it a condition of their counteroffer. But you don’t have to agree! You can push back or walk away if it feels too invasive, especially before they’ve accepted your offer. It’s not standard to demand a second pre-approval this early, and it’s a red flag if they’re piling on requests without committing to your offer. What can you do? Confirm the Credit Check: Double-check with the seller’s lender that it’s only a soft inquiry. Ask for it in writing to avoid surprises. If they insist on a hard pull, politely decline to protect your credit. Push Back Politely: Have your agent explain that you’ve provided financial statements and a valid pre-approval, so a second full application feels unnecessary. I've had this request before and I always get the buyers lender in touch with the listing agents preferred lender to exchange the documents needed. The listing agent's lender wants to make sure that you are qualified for the loan. I've never had my buyer's involved in the cross-qualification process. It's typically done thru the lenders since the agents aren't supposed to obtain financial documentation.

It is not common to have the selling agent ask to have you get pre-approved with their lender of choice. But it does happen. If you have gone through underwriting with your current lender that is all you should need to do. Your lender can talk to their lender and they can give them what they need to make them feel comfortable to accept your offer.

Its allowed, but a bit over the top. This seller must have been burned before. Depends on how bad you want the house and you might get a better lender deal to boot.