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Okay, I read a bit of the Bonterra M thread...That said, sometimes you can make out better..I have called numerous banks/mortgage co. When all is said and done, so far, I would be paying 1-5 thousand dollars more by *not* going with pulte mortgage..(I had a misunderstanding regarding the mortgage with Pulte in the beginning, which was clarified/cleared up by their good faith estimate documents they sent out...They offer 10,500 toward closing right now)
(yes, they are a bit higher in interest...I think the average now is 6.375?? (depending on the loan you get) Pulte is 6.5)
While the GFE is a good tool to compare numbers, make sure to also get the APR. This is a quick way to see which lender is offering a higher priced loan.
Do not believe what you are told by the "Builders" Mortgage Companies. I have had clients call me back and tell me that they wish they would have listened to me.
Someday soon the Federal Government will step in (like they have done in other States) and fine the builders that offer incentives to streer clients to their own mortgage companies. This practice is illegal. It gives the builder total control of the buyer.
agree with above poster 100%!!! we did not use pulte mortgage for our home when we built and I am so glad we didn't. even though it was a while ago we came out better going with our own lender, builders have too much control these days....
I just got my NC RE license and remember thinking in class that that was illegal. I'm surprised they get away with it.
Quote:
Originally Posted by ncmortgageprofessional
Do not believe what you are told by the "Builders" Mortgage Companies. I have had clients call me back and tell me that they wish they would have listened to me.
Someday soon the Federal Government will step in (like they have done in other States) and fine the builders that offer incentives to streer clients to their own mortgage companies. This practice is illegal. It gives the builder total control of the buyer.
I just got my NC RE license and remember thinking in class that that was illegal. I'm surprised they get away with it.
I think it's an option and that's how they get away with it. No one is forcing you to use their recommended lender. Just like options on your house, no one is forcing them on you, either, unless you buy a spec or inventory home.
We've had a realtor line up a mortgage pro for us, even met her at the realtor's office. And we've actually used the mortgage recommended by the builders twice now. My husband handles it and keeps up with it. We have used the mortgage companies recommended by Arvida and Centex so far. From what we have seen and considering they pay the closing costs, they are competitive. Can you find someone lower or higher? Most likely but the builder's lender's can be competitive and then you only have to come up with money for insurance, taxes, down payment, HOA, or whatever, as opposed to coming up with all of that and the additional closing costs. I believe you can get ripped off with any lender if you don't watch them but you have to be comfortable using the builder's lender.
I have a friend that is going through Centex's mortgage company right now as we speak and she is no dummy. She graduated from the Wharton School of Business. The lender/builder are paying points and closing costs for her. If she doesn't use them, she loses all of that incentive but she also has been shopping around and she finds them fairly competitive, considering what she has to lose. She is shopping around for refinancing, just to see how she can do with that, too. She wants the best deal possible and I can't blame her. I believe you have to factor in both the pros and cons of using the builder's mortgage company and do your research. Be an educated consumer and you will not get taken advantage of.
We are always in a hurry to move and move every couple of years, so there is usually no sense in refinancing, not that we haven't refinanced but it's usually not the best idea for us. It's not like we stay with a 30 year fixed for long, anyway, but from our experience, it's cheaper than the other mortgages out there.
I'm curious about the poster that used Wachovia or an outside lender, how much were your closing costs? I do know that occasionally you will find a bank that pays closing costs but it's not an every day occurrence. If the bank offers a cheaper rate and they pay your closing costs, then you may be further ahead. If it is a slightly cheaper rate and you plan in being in the house for 30 years, then you may be further ahead. You need to sit down and figure it out for yourself and what works best for you and your finances. If you have a lot of time to look into it, look into it. We typically have a couple of weeks to close on a house so as long as the rates are competitive, we don't worry about it. We need to make a choice on a lender, get the rate locked, and get the paperwork moving. We don't have the luxury to wait around on it.
I know the majority of posters are not found of builders lenders...
That said..I am still having difficulty finding another bank/mortgage lender that will beat the deal the builder is offering...
As I said before. I get 10,500 toward closing. The APR is 6.5 (with Pulte) right now, which is close to what other banks/mortgage lenders are offering.
I could buy down the rate if I wanted. Or, just put the additional towards the cost of the home...Not sure what is the wiser move...
Anyways...even with BOA's no closing costs (but have to pay at least 1 pnt minimum) loan, I would still have to pay out around 3,500 dollars. With pulte, when all was said and done, I would pay out around 2,500 to buy the rate down, if that is the path I chose.
The way all seems to be stacking up for me as of today. Is that it seems wiser to go with the builders lender, due to the 10,500 being offered. If the builders lender were not offering a money incentive that large. Then it probably would be wiser to go with someone else other then the builders as the lender..
I used M/I finanical 3000 off closing and fixed 30 Y 6 1/8th with Lender paid PMI.
None off the banks could beat the deal, other lenders kept trying to fudge the closing costs, missing out a couple of fees that you would have to pay etc.
Hi,
I am currently under contract with Pulte and am using Pulte Mortgage. If it was not for the 10,000 in closing and 2yrs of HOA fees paid I would be elsewhere. So far the service has been sub par from the Mortgage side vs the Sales side, they really make the mortgage division look bad. I dont get returned calls and they leave messages for me to call them, and they dont call me back.
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Builder mortgages...
