New Home Loan in Houston - Closing costs waived? (mortgage, credit)

[caldvn]

Plan on doing a conventional loan for 320k w/ 20% down. No FHA. Credit around 720. I don't qualify for New Home Loan 8k.

With some builders they apply 2% into closing, therefore I have to pay 1% closing costs + fees. Which comes out to around 6-8k.

Are there any mortgage loans where certain amount of closing costs are waived?

[City Love]

Have you checked with that particular builders lender? Do they have one? Or are you still shopping for the home?

[Dougishere2]

Originally Posted by caldvn

Plan on doing a conventional loan for 320k w/ 20% down. No FHA. Credit around 720. I don't qualify for New Home Loan 8k.

With some builders they apply 2% into closing, therefore I have to pay 1% closing costs + fees. Which comes out to around 6-8k.

Are there any mortgage loans where certain amount of closing costs are waived?

The only way you are going to get the total closing costs waived is if you do the loan through the builder but I doubt that they will waive all the closing costs. Have you ever heard nothing is for free? Believe me you are paying for it somewhere. I am in the mortgage business and I can shoot down any new homes Mortgage offer because I can show you where they are really getting to you. Just a .250% rise in your rate can make a huge difference if you multiply that difference by how many months you plan to stay in the home. Your ultimate goal should be to get the lowest intrest rate you qualify for, and the lowest closing costs. Todays rates on a 30 year fixed rate is 5.250%. You shouldn't have but 1% loan origination and no discount points.

[caldvn]

Originally Posted by Dougishere2

The only way you are going to get the total closing costs waived is if you do the loan through the builder but I doubt that they will waive all the closing costs. Have you ever heard nothing is for free? Believe me you are paying for it somewhere. I am in the mortgage business and I can shoot down any new homes Mortgage offer because I can show you where they are really getting to you. Just a .250% rise in your rate can make a huge difference if you multiply that difference by how many months you plan to stay in the home. Your ultimate goal should be to get the lowest intrest rate you qualify for, and the lowest closing costs. Todays rates on a 30 year fixed rate is 5.250%. You shouldn't have but 1% loan origination and no discount points.

Sounds about right, 2 of the builders had 2% closing incentive using their mortgage lender. One was set at 5.25% and another at 5.35%, looking at the both builder's preferred lender's loan sheet, the costs for different fees don't match up.

That can all change when it comes to closing, whether or not the interest rate goes up or down is up in the air by that time, 4-6 months, a lot can change.

One builder had no preferred lender, so I wanted to see what my options were. I am leaning towards this builder but the closing costs can make or break the deal. That means I have to find a lender that will take care of the 2% closing, while I cover the 1% and have market price interest rate.

P.S. thanks for the replies.

[Dougishere2]

Well if you have any questions please feel free to send me a message and we can exchange phone numbers. I will give you an honest answer.