Loan type for $0 Down - Urgent advice needed

[SmartMoney]

You are getting sound advice here.....and guess what, you are in the driver's seat. Don't let any site reps w/ the builder feed you any BS, "this deal is only good for X days." So many thoughts are flying around in my head......and being female, I am compelled to share. But if you only have the patience to read the first paragraph, don't sign one document, NOT ONE, unless you get your way on (almost) everything. Last I checked, it's still a buyer's market in all 50 states. The seller markets are rare.

Let's start with the realtor. We can all see the logic if there is no realtor, that is what, 3% less the builder has to pay - oh and he can pass it along to you. Okay, well, I am willing to bet if you brought the realtor in and kept the sales price at the lowest the builder mentioned, you would get that price, as well. What a freaking moron this builder is......for so many reasons, but the biggest being they are slapping the very community that fuels his business. That alone would be enough for me to look at other builders. Do you really want to do business with someone that conducts themselves like this? Look back at this subdivision and ask yourself what has you drawn to this subdivision and this builder?

As for the 3% realtor commission....again, this most likely is the most expensive purchase of your life. Let's assume the builder is *right, you're going to save 3% not using a realtor........do you really want to forego anyone representing your interests? Your last post indicates you have found a friend from your native country, which will be invaluable. Invaluable provided your friend remembers to provide more than translation service and is not intimidated by the builder. Unfortunately, many of our homebuyers and realtors of other nationalities are in many cases too respectful, to the point they are taken advantage of. In plain English, many do not speak up as loudly as they need to at the right time.

Earnest money deposits. In our current environment, I would not purchase a new home without my earnest money and option money being held by a 3rd party (attorney) to the transaction. Too many bankruptcies occurring. Anyone that would argue this to the point of not accepting a contract, well, I would say, "see ya."

Contract price. I would insist on a clause regarding current value at the time of closing. If we are seeing values decline 10% a month, how much more are you paying at the settlement table? Most conventional apppraisals are good for 180 days for new construction and FHA will run for 180 days, as well. What I am saying, it's very possible you could wind up paying more than the property is worth, based on a February value and it would be okay with the lender, the way guidelines are currently written. (I suspect we will see re-writes in the immediate future, but right now, there are no real safe-guards for this).

Lenders. See above. This point would be non-negotiable for me. I would let the builder and their rep know up front and tell them to contact my realtor should they wish to reconsider their position on this matter. I am betting meanwhile, it will take little effort to find someone else to concede on this matter.

Back to your realtor. Before you sign any contract, make sure you understand what is being signed and when. Equally important, know at what stage what is at risk should you want to back out. Be sure you have your realtor explain to you until they are sick of explaining it, what is happening and when. Get your realtor to come with you on the loan application if there is a language barrier. Don't sign anything that does not agree with what is being stated verbally. Chances are you just drew up the offer and the builder has not signed (meaning you are not under contract until the officer for the builder has signed). If anything has been bothering you since you wrote up the contract with your agent and the builder's representative, you can instruct your agent to fax a withdraw of contract offer to give yourself more time. I only mention that in the event you have been rushed or pushed through this process - something that there is no excuse for.....but too many sellers and builders (and their reps) are acting out of desperation.

Please let us know how it went.....

[newhomebuyer80]

Smart Senior,
Thanks for your advice.
* They declined to finish the contract without earnest money deposit. From the builder manager, sales csr and other committee, So i paid the earnest money - which will I get it back if they went bankrupt through cases - not sure in how many years - FAILED ATTEMPT
* Market value - They said , they cant match the market value - if the market goes down - your contract date is the key. My realtor and myself argued about an hour with their team - they didnt agreed to sign the clause about market value - FAILED ATTEMPT
So far, my price of $63.50 per sq.ft at pearland tx - I am happy with the price deal - really happy; I am going to spend may be around $5000 for the upgrades - which I couldnt make them convinced before the contract. Like extended concrete slab, carpet change, molding change, tiles change, etc..
my final price will be around $255000 from $25000 - I have $8000 to upgrade from builder - but with three items its gone - wood rails to stairs, kitchen cabinets, vanity - others small items are gutters, double crown molding at master bed room, marble in master suite, I have to spend....
I am really happy by the search I did to find out the lowest price with decent builders reviews.

[Electrician4you]

Best to get your own representation. Builders don't like it because they do not have complete control of the purchase. I know some builders require you to be ore approved with their lender/bank but you can have your win lender. Buying a house from a builder is really no different than buying from Joe average. The seller is different in name only but it's still a seller with a house to sell

You may get more price break or lower rates.

[wooliemonster]

^^ this was a thread from a long time ago in a galaxy far, far away.