If you’re a buyer who’ve ever lost out on a home you may have been a victim of discrimination. Not the kind of discrimination based around race, ethnicity, gender, or sex. But rather the kind that discriminates against the kind of loan or financial institution you decided to do business with.
Sellers have the right to make a decision regarding which buyer they should choose based on the kind of financing the buyer has in place. Some sellers might decide they don’t want to work with buyers who have 100% financing out of fear the buyer may not have the financial wherewithal to close the deal. It is also common for sellers to decline to work with buyers who have pre-approved loans from certain financial institutions due to the negative reputation the lender has in the marketplace. In cases such as these a seller would often simply ask the buyer to choose a different lender before proceeding with the transaction.
Ultimately, sellers aren’t interested in rejecting buyer’s offers for the sake of an unjust motive, as they want to sell their home, but they do it, at times, because they want to be sure they’re working with the buyer who gives them the best chance of closing their home with very few problems in between.