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We were also hoodwinked into using NVR mortgage services so we could receive the full benefit of free upgrades being offered.
While I had my own poor experience with NVR (as I've posted before), I fail to see how you were "hoodwinked" into using them. You were always free to choose your own lender. They offered certain incentived if you used NVR, but I wouldn't call that trickery.
Quote:
Originally Posted by Military Member
I will never use NVR Mortgage, Settlement Services or any other service they say is separate, but they are all one big company with Ryan homes, ever again!
I'd be surprised if they presented NVR as being a separate company. The fact that NVR is Ryan's mortgage company should have been disclosed right off the bat. It was never a big secret when we dealt with them.
While I had my own poor experience with NVR (as I've posted before), I fail to see how you were "hoodwinked" into using them. You were always free to choose your own lender. They offered certain incentived if you used NVR, but I wouldn't call that trickery.
I'd be surprised if they presented NVR as being a separate company. The fact that NVR is Ryan's mortgage company should have been disclosed right off the bat. It was never a big secret when we dealt with them.
I am a Real estate broker and I know that NVR was a Ryan owned mtge co. I negotiated to still get the incentives from Ryan if NVR could not match the interest rate and closing costs associated with the loan from other mortgage companies. They came up with the best rate 4.3 and zero points to beat out a large bank. I had the home inspected during construction and after completion. Everything was done to my clients satisfaction. Ryan is like any other builder, they are only as good as the sub-contractors. Now that business is slow you can get better subs because there is more competition for the fewer homes being built. I have seen million dollar custom homes become a disaster because of bad subs and lazy project managers, as well as loans with the big banks like Wachovia and BOA. It depends on how diligent and active your real estate agent is with the builders and how well informed he /she is about the mortgage rates and closing costs. If you let the project manager know up front that you are going to be on his donkey from start to finish you will most likely end up with a decent home and if you inform your client and the mortgage broker or loan officer that if they want your business you are not going to let your client pay many of the junk fees they add on, or a higher int rate than they can get elsewhere, you can get about the same deals with most lenders.
Last edited by rmorton; 05-29-2009 at 01:04 AM..
Reason: spelling
Well I have not had time to read the entire thread BUT when dealing with a broker ALWAYS ask if they are adding "yield spread" to the rate. You can actually see this on the second page of the final disclosure, it will say "ysp". If they do then they have added something to the rate you qualify for to earn extra money off you loan. Basically if you qualify for 3.75 and they can sell you 4.0 then they get an extra point off you loan. Nice huh? Unfortunately if you are dealing with a lender not a broker they do not have to disclose yield spread. Even nicer huh?
While I had my own poor experience with NVR (as I've posted before), I fail to see how you were "hoodwinked" into using them. You were always free to choose your own lender. They offered certain incentived if you used NVR, but I wouldn't call that trickery.
[FONT=Verdana]It is hoodwinked when you are given the high pressure sales pitch that using another company could jeopardize getting your house. Because of all the problems they've seen in the past when people used other companies with documents not being prepared properly or delivered on time.......[/FONT]
I'd be surprised if they presented NVR as being a separate company. The fact that NVR is Ryan's mortgage company should have been disclosed right off the bat. It was never a big secret when we dealt with them.
SURPRISE!!! [FONT=Verdana]We asked them directly and were repeatedly told that Ryan Homes and NVR were seperate companies; glad to hear you had a different experience.[/FONT]
I am a Real estate broker and I know that NVR was a Ryan owned mtge co. I negotiated to still get the incentives from Ryan if NVR could not match the interest rate and closing costs associated with the loan from other mortgage companies. They came up with the best rate 4.3 and zero points to beat out a large bank. I had the home inspected during construction and after completion. Everything was done to my clients satisfaction. Ryan is like any other builder, they are only as good as the sub-contractors. Now that business is slow you can get better subs because there is more competition for the fewer homes being built. I have seen million dollar custom homes become a disaster because of bad subs and lazy project managers, as well as loans with the big banks like Wachovia and BOA. It depends on how diligent and active your real estate agent is with the builders and how well informed he /she is about the mortgage rates and closing costs. If you let the project manager know up front that you are going to be on his donkey from start to finish you will most likely end up with a decent home and if you inform your client and the mortgage broker or loan officer that if they want your business you are not going to let your client pay many of the junk fees they add on, or a higher int rate than they can get elsewhere, you can get about the same deals with most lenders.
NVR mortgage practice seems to be not so straightforward. NVR ties the incentives to the mortgage. The mortgage in OH is serviced by another Bank (Third fifth of Cleveland in our case). The fees are high.
The points you pay for your loan are counted as "origination fees". The fixed cost in addition to that is about $2500. Beyond that, at the time of closing, you need to take interest + insurance at the time of closing. Oh! You also waive your rights for suing them after one year for any reason. This is what makes me very nervous.
Do not trust your buyer's agent. They collect money from the builder... so definitely a conflict of interest there... Retain a lawyer... no matter what.
Overall, not a pleasent experience...
NVR mortgage practice seems to be not so straightforward. NVR ties the incentives to the mortgage. The mortgage in OH is serviced by another Bank (Third fifth of Cleveland in our case). The fees are high.
The points you pay for your loan are counted as "origination fees". The fixed cost in addition to that is about $2500. Beyond that, at the time of closing, you need to take interest + insurance at the time of closing. Oh! You also waive your rights for suing them after one year for any reason. This is what makes me very nervous.
Or just use someone else instead of NVR for your mortgage.
I live in Stonewater. Do not purchase a Ryan Home, here or anywhere. You may be happy the first 3 years or so, but then all hell breaks loose - right after your warranty expires (that ten year warranty that they promote is only on the STRUCTURE). Once the warranty expires (2 years on plumbing, HVAC, electrical) you are not their problem. It's happening to us right now and I know a lot of our neighbors are experiencing similar high-cost problems. Our issue is a very rarely used toilet on the second floor was installed improperly and we now have sewage leaking into our Study. What plumber doesn't know how to properly install a toilet?!?! Shoddy work. You may pay minimal dollars per square foot on the front end, but you'll be paying big bucks out of pocket to fix all the corners that they cut in the long run.
I live in Stonewater. Do not purchase a Ryan Home, here or anywhere. You may be happy the first 3 years or so, but then all hell breaks loose - right after your warranty expires (that ten year warranty that they promote is only on the STRUCTURE). Once the warranty expires (2 years on plumbing, HVAC, electrical) you are not their problem. It's happening to us right now and I know a lot of our neighbors are experiencing similar high-cost problems. Our issue is a very rarely used toilet on the second floor was installed improperly and we now have sewage leaking into our Study. What plumber doesn't know how to properly install a toilet?!?! Shoddy work. You may pay minimal dollars per square foot on the front end, but you'll be paying big bucks out of pocket to fix all the corners that they cut in the long run.
This doesn't happen to everyone.
Didn't you have an inspector check the work being done?
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