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Old 04-14-2015, 03:08 PM
 
Location: Katy, TX
463 posts, read 408,272 times
Reputation: 726

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So I just got off the phone with PenFed. A bit frustrating trying to explain that even though we are building a home it's not a construction loan. The Rep. kept telling me to finance through the builder then refinance through PenFed. Why would I do that? Why would I pay for closing costs twice in a short time frame? I find that very odd for him to tell me that.

So far we have inquired with two companies. (They ran our credit, approved us, and they have all our financial documents.)

1.) Local broker, matches builders closing cost credits. Pretty sure those matched credits are added to the interest rate. She seemed fixated on 3.75%, that was back in January. I think she may even be above that come time to close. In fact she said we could rate lock at 4% back in Feb. Not going with her.

2.) Builder's Preferred lender. Smooth process. Rate seemed to match the market at the time (3.625% back in Jan). Came in lower on monthly payment with their GFE ($200). Today their rate is 3.75%.

3.) PenFed- Recommended by family member who IS building a custom home. I've heard that builders are not very flexible with moving closing dates because of slow lenders. I have not completed a loan app through them yet. Their rate quote today is 3.375%. Which matched USAA. Might as go with USAA since we are members and I don't have faith in PenFed based on that phone conversation. USAA can do a closing date of May 20th, home SHOULD be completed May 23rd. Not sure how flexible this is.

Has anyone had experience or trouble closing on a new build using a credit union?
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Old 04-14-2015, 09:13 PM
 
Location: South Texas
478 posts, read 829,404 times
Reputation: 593
If you're not financing the construction, what are you obtaining a loan to finance?
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Old 04-14-2015, 09:21 PM
 
Location: Katy, TX
463 posts, read 408,272 times
Reputation: 726
We have a purchase contract. We paid earnest $5k, plus 50% of the design center total. We have not financed anything yet. Not until the home is complete and Perry Homes wants to close and make it officially ours.
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Old 04-15-2015, 06:39 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,320 posts, read 17,538,176 times
Reputation: 22164
How cone the builder isn't offering you an incentive to use their preferred lender? That's pretty standard, I thought.

PS - I'm a huge fan of USAA, but whenever I got a quote from them for a purchase mortgage or refi, they were never, never, never the cheapest deal. At one time, they did a great LOC for me (a decade ago). Now, they are way higher than elsewhere.
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Old 04-15-2015, 06:43 AM
 
Location: Houston Metro
1,065 posts, read 1,195,649 times
Reputation: 1524
You are right about the flexibility part. If you are using their in-house lender (Cornerstone or Crestmark for Perry IIRC), any delay with the loan won't be on you. If you are using your own lender, all the burden lies on you to make sure you close on time. And in talking to a few of my neighbors (Perry/Newmark neighborhood), Perry isn't too kind about delays caused by outside financing.

Out of curiosity, what are your concerns with going with Crestmark/Cornerstone(Same company)? I used Cornerstone on mine (Newmark) and the loan was sold to Chase before the first payment was due. The loan process was great, and they matched the best rate I could find outside of them. At the end of the day you'll be hard pressed to find an external lender that can meet the incentives and interest rate of the builders preferred lender.

Quote:
Originally Posted by angiesu View Post

3.) PenFed- Recommended by family member who IS building a custom home. I've heard that builders are not very flexible with moving closing dates because of slow lenders. I have not completed a loan app through them yet. Their rate quote today is 3.375%. Which matched USAA. Might as go with USAA since we are members and I don't have faith in PenFed based on that phone conversation. USAA can do a closing date of May 20th, home SHOULD be completed May 23rd. Not sure how flexible this is.

Has anyone had experience or trouble closing on a new build using a credit union?
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Old 04-15-2015, 06:56 AM
 
Location: MID ATLANTIC
7,603 posts, read 17,648,062 times
Reputation: 8099
I work for a credit union with a focus in new construction. You shouldn't have any issues. Do a google search for "NMLS Consumer Access." Now look up your loan officer by name or nmls number. It's a dirty little secret inexperienced loan officers don't want you knowing about. Click on the link for 10 year self reported history (that history has been validated BTW). If you see banks and mortgage companies as a background, chances are you are fine. Many of us made the move to a credit union for better pricing and flexible underwriting after Dodd Frank killed our world.
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Old 04-15-2015, 07:47 AM
 
Location: Katy, TX
463 posts, read 408,272 times
Reputation: 726
Quote:
Originally Posted by haudi View Post
Out of curiosity, what are your concerns with going with Crestmark/Cornerstone(Same company)? I used Cornerstone on mine (Newmark) and the loan was sold to Chase before the first payment was due. The loan process was great, and they matched the best rate I could find outside of them. At the end of the day you'll be hard pressed to find an external lender that can meet the incentives and interest rate of the builders preferred lender.
I appreciate you sharing your experience. In one of the communities we were considering we were down to Perry and Newmark (nice!). We ended up going with another community that does not have Newmark. That would have been a hard decision between the two.

Honestly I really like who I've been talking to with Crestmark. I'm very impressed with them. They knew we had a broker originally and asked for their GFE. She created a spreadsheet comparing the two and talking about the differences. I prefer a smooth process, but then I wonder am I not being smart for not going with the lower rate? It doesn't help that I have a sister and brother in law building at the same time and they are going with a 5/5 arm through PenFed.

You confirmed my suspicions. If we choose another lender and they delay it's on us. I had a feeling that would be the case. I really don't want that stress. Crestmark did mention they could possibly offer additional credits a month ago. At that time we thought we would just go with the local broker that had been recommended.

Thanks!
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Old 04-15-2015, 07:55 AM
 
Location: Katy, TX
463 posts, read 408,272 times
Reputation: 726
Quote:
Originally Posted by Jkgourmet View Post
How cone the builder isn't offering you an incentive to use their preferred lender? That's pretty standard, I thought.

PS - I'm a huge fan of USAA, but whenever I got a quote from them for a purchase mortgage or refi, they were never, never, never the cheapest deal. At one time, they did a great LOC for me (a decade ago). Now, they are way higher than elsewhere.
Yes, the builder does have closing cost credits. The broker was matching them but her rate was higher.

We love USAA for banking, auto and homeowners insurance. We had a large claim on our rental property (storm damage). The process was easy. Their homeowners quote for this new property was ridiculous!. We got a better quote from First Command and it is better coverage. I'm sure that claim with USAA did not help. Ironically with our rental property we went with First Command at the time of purchase because they were lower than USAA, then a year later USAA offered a lower rate if we switched so we did.
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