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Old 11-27-2012, 11:53 PM
 
132 posts, read 1,144,193 times
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Quote:
Originally Posted by snowdenscold View Post
You're getting a mortgage now for a house that's not closing for 7 months?
It's a new build with a national builder...isn't that how it works? I'm completely new to this.

Like I said in the other thread, I understood from the mortgage company (which is owned/is the same company as the builder) that this is an actual approval, not just a pre-approval.
Once we receive a "Letter of Loan Approval" (as they call it in the sales contract), then they will start to build the house and our earnest deposit is no longer refundable. Pending that nothing significantly changes between the approval now and the closing, everything should still go through in 7 months.

Isn't that how new construction normally works? I wouldn't think that they would start building and put all that money/time into it unless you are actually approved, not just pre-approved.
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Old 11-28-2012, 10:14 AM
 
1,784 posts, read 2,835,323 times
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Well, I'm not familiar with your sort of situation. Usually I've seen builders plan to build a large number of homes in a subdivision, and they'll start with sections, and once they've got enough buyers on ones they're already committed to building, they'll go ahead and schedule the next section to be built, and the process repeats.

Making each person get a full loan approval from them before they even consider building is different. Someone else will have to chime in if they've seen it. Maybe when it's a small number and/or high-end/custom units?
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Old 12-04-2012, 11:59 PM
 
Location: Farmington Hills, MI
19 posts, read 35,856 times
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Actually, the loan amount will increase by only $6490.15, according to the document you provided. The other costs will be paid on a monthly basis via escrow, which includes 9 months of taxes and 3 months of insurance. The daily interest fee found on the bottom is calculated based on skipping your first month of payment after the purchase is complete, although you won't be charged for this until you either pay off your entire loan or refinance with a new lender--whichever happens first--so this amount will only reflect in your mortgage when payoff is ordered, or repayment of the loan is complete. FYI, these charges can be avoided if you simply decline the option to skip your first payment, which I recommend.

The document you provided looks like a GFE (Good Faith Estimate), but correct me if I'm wrong. However, if this is actually the case, then you should actually rely on your HUD document for a more accurate understanding of the final numbers associated with your purchase, since the GFE relies on arbitrary information that can change on you later in the process. If you don't have a copy of this document, you should request one asap if possible, because you can probably find a much better deal with a different lender. Trust me, I work for a bank as a loan officer, and the fees provided in this document are pretty high, so I would consider shopping around.
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Old 12-05-2012, 04:53 PM
 
132 posts, read 1,144,193 times
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The information is from the "Itemization of Settlement Charges", not the GFE.
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Old 12-05-2012, 09:37 PM
 
Location: Farmington Hills, MI
19 posts, read 35,856 times
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Quote:
Originally Posted by SelfEmployed75 View Post
The information is from the "Itemization of Settlement Charges", not the GFE.
Ah, the itemized fee worksheet. This doc is similar to the GFE, but much less organized/thorough. I would rely on the GFE for a better understanding of how your pricing works, assuming your lender has yet to provide you with a HUD document.
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