I had financing lined up through Navy Federal to purchase a new build home from KB. Asked for the purchase contract to begin the process and put down the earnest money. KB wouldn’t let me continue unless I let them have a chance to compete for the loan through their affiliate lender KBHS (which they get a portion of profit from). I declined.
They then said I must submit ssn, bank statements, w2s etc for verification of identity, and so it gives their affiliate lender a chance to match the rates etc. I declined
Then they said I must submit those underwriting documents so they can verify financing can go through. I told them they can verify directly through my lender any financing concerns. My loan officer confirmed I don’t have to give them anything and they can verify directly lender to builder.
Then Kb said it’s in their contract that we have to do it. They sent an empty contract and I read it and it’s all vague lawyer talk with nothing specifically saying i have to do what they are asking. There are multiple typos in the contract and its written from the perspective if the buyers have chosen KBHS as their lender, with no section addressing if the buyers are going with an outside lender.
They are a shady company and this all feels predatory. Consumers have rights and don’t have to just hand over information when there are clear visible paths to receive information.
Anyway they tried more pressure tactics so I just decided to walk away. Stay far away from KB homes.