Builders Lender (Wells: loan, how much, home)

[Thought1011]

Is it worth going with builders(village builder) lender? They are offering title and policy coverage for going with them, how much will be he approximate closing cost for 380k home?

[cheryjohns]

Get a Good Faith Estimate, which details their closing costs. Lenders charge different costs - that's why there is no standard answer on what they will be for $380K. Two different lenders may vary by a huge amount. Get a second GFE from another lender. Compare rates and compare closing costs. You may not be getting that title policy "free", if that builder's lender loads you up with junk fees. Title policy will run about $2300.

[johnsmith]

VB leader is very good as I heard. You can compare their closing cost with your lender and make decision.....

[jtothemak]

As stated above, just compare closing cost with other lenders. The builders lender is going to sell the note to a big back like Chase or Wells Fargo right after you close.

[carryyourbooks]

it was cheaper for us to use the builder's lender. plus, all of our paperwork was sent to them by the builder making it easier on us.

[longhorn96]

I can't comment on VB specifically, but We have decided to go with our builder's lender after comparing their GFE with two other lenders and determining it fell somewhere in the middle. The builder's lender was only a few hundred dollars more than the one with the lowest GFE, with the added convenience of their ability to be flexible with possible construction delays, etc.

The customer service from our assigned rep leaves something to be desired, but we are tolerating it for the savings on our closing costs.

[hulio82]

Originally Posted by johnsmith

VB leader is very good as I heard. You can compare their closing cost with your lender and make decision.....

+1

we used their lender and process was smooth. Get a GFE before signing and as with any lender, do your homework and read everything before you sign and double check all their numbers. Their lenders are swamped (They had 50 closings scheduled on the same day we were supposed to close) and lot of times will just miss stuff or make mistakes.

[Athena2c]

Like everyone has said, get quotes from at least one other source.
We opted for the builder's lender when buying our inventory home because they found us the better loan, even before adding in the incentives for using them.
It was convenient using them when things came up that extended our escrow since they have a direct line to the builder. But I liken it to going to a chain restaurant over a unique high-end place, the customer service is fine but not stellar.

[swopoe]

We also used our builder's lender when we closed in March. We did compare it to another lender, and we got the better deal by going with the builder's lender by far. And we got great service too.

Good luck!