Closing with Ryan and NVR or other (Charlotte: real estate, mortgage)
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Just curious, looking at a new property from Ryan, and looking at taking the incentives offered. Would like to hear from anyone else that has gone that route and what closing costs did NVR pay??? Or even what is typical in Charlotte area, as I'm coming from out of town. They are currently saying that they pretty much aren't paying anything, the big one being the Tax stamps at around 2k. Just curious if this is normal or not.
I'm surprised they aren't giving any incentives to use their mortgage company -- also incentives towards building. As far as revenue stamps go, it is $1 for every $500. Many new builders are having buyers pay this (rather than in a resale, where that is a sellers closing cost). I would discuss with your realtor -- maybe they would be able to negotiate something on your behalf.
With regard to mortgages, I would definitely shop around...
Last edited by south.charlotte&union; 08-28-2007 at 06:53 AM..
Sorry, they are offering incentives, reason looking at their lender. Just wasn't sure of the revenue stamps, who traditionally pays for this. Even with me paying it, I have a few other banks which it is seeming to be cheaper to go with (closing costs and such) than NVR. so the incentives aren't all that incentive now...lol
So true What I advise people to do, is tell the other lenders the incentives that the builder is offering, and ask them to explain to you why you should use them rather than the builder's lender. THEN, (after you get the best deal you can from the other lenders -- in writing) go back to the builder and see if they can match it. Sometimes they can Best of luck.
Ryan/NVR offered a "free" morning room if we went through NVR. Well, nothing is free, they just included it.
We did go w/NVR. I have to say through the whole process, NVR was very good in terms of customer service. I was in constant communication w/them through the whole process which I was pleasantly surprised.
Do you homework. Everyone's situation is a little different.
Make sure you read the fine print in your contract. If you decide to NOT use NVR, then any incentives go away. In my case, the price of the house would go up $20k if I went to another mortgage company. The interest alone on $20k would be about $1250 per year. IMHO, saving $2k more in tax stamps at closing isn't worth the extra $1250 per year in interest for the life of the loan.
I had a bad experience with NVR and would not use them again. The customer service in my experience was horrible and the lack of communication (return phone calls) was unacceptable. But like CouponJack said every experience is different.
We are currently in the process of purchasing a Ryan home and using NVR. So far NVR customer service has been well below par. That being said, there are a few things you should know. Ryan cannot require you to use NVR, that is completely illegal. Going through NVR to receive the incentives is legal PROVIDED that the incentives are "TRUE DISCOUNTS" and not built back into the cost of the loan. In other words, the rates and fees must be competitive with what you can receive on the open market. I am sure you are already aware that Ryan's parent company is, in fact, NVR.
Read these articles for more info:
Incentives to use builder's lender come under fire -- chicagotribune.com (http://www.chicagotribune.com/classified/realestate/financing/chi-0505010484may01,0,3509096.story - broken link)
$2000 for Revenue stamps is extremely high for a Ryan home. Are you sure you have the right number?
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What I advise people to do, is tell the other lenders the incentives that the builder is offering, and ask them to explain to you why you should use them rather than the builder's lender. THEN, (after you get the best deal you can from the other lenders -- in writing) go back to the builder and see if they can match it. Sometimes they can 
