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we have finally found our home and now we are struggling with mortgages , being a first time home buyer adds to the anxiety , we got several GFe from numerous places and now with the interest rates going crazy we cant seem to understand which to go for .... our builder has their own lender and we signed a contract saying we shall go with ur lender but they charge a slightly higher interest rate than the rest ..and most of their third party fees are a bit higher than rest too but offering 3000 $towards closing cost and we r kind of stuck whether to bind with the same / go outside although we spoke to the sales consultant of the builder she said its ok if we take loan from outside and obv we wont get the 3000 $, but i am apprehensive like at the closing table they shouldnt say u breached the contract / something .
i really need help deciding how to select best mortgages , we r looking for a 30yr fixed and have excellent credit as of now.. and is this time we lock in rates with mkt going haywire we feel like we r stuck with high rate , and unfortunately we cannot wait long as they wanna close by end of this month to 1week july
Just do your best. You can always refi down the road if necessary. Just remember it costs 5K or more every time you do it. They hide the fees to make it look not quite as bad as it is but it's not cheap.
lovelyhome
Have you talked to the loan person that the builders mortgage company has given to you ? This is who you need to be talking to not your salesperson.
When we though we were moving we had the same deal, use the builders lender and they would give us $7500 toward closing.
I told them I had no problem doing this,but I had an 808 credit score and 30 years in the credit industry so if if it turned out there were charging higher rate and costs I would go elsewhere. They said no problem. As we got closer to the projected close date I called our Insurance company who also does mortgages and asked them for a quote. Lo and behold they gave me a lower rate along with closing costs that were $6000 less than the builder.
I called my loan person at the builders mortgage company and had a little "chat". They said if I faxed them the est. of costs and rate they would see what they could do to match them. It turned out there was a delay in the promotion so we had to cancel the house but we got our erarnest money back
Run the numbers the builder may give you $3k but if their closing costs and rate is higher there goes your $3k.
I would not wory about them claiming "breach of contract" at the closing table, with the slow down in the housing market they want to get this house closed. Your salesperson wants their commission.
Negotiate,negotiate oh yeah did I mention negotiate
If you have a credit score over 720 they want you more than you need them they ball is in your court.
You wouldn't buy a car and pay sticker, well look at the house as a very expensive car
Good luck
Karla
Being in the lending industry myself, I would say that the advice from myfask was well put. Shop around, don't ever take the first thing that is thrown at you as the only one. It is one of the biggest things that you will ever do and is well worth your time shopping around. Good luck........
"our builder has their own lender...but they charge a slightly higher interest rate than the rest ..and most of their third party fees are a bit higher than rest too but offering 3000 $towards closing cost..."
As a suggestion, you might consider reading an article titled " A Helping Hand In Builder Disputes", by Ken Harney. Google the title and you'll find it.
"i really need help deciding how to select best mortgages..."
I suggest buying the book "Mortgage Confidential: What You Need to Know that Your Lender Won't Tell You", by David Reed. It's a very quick read, only 199 pages and includes a mortgage glossary. You might also consider his book "Mortgage 101: Quick Answers to Over 250 Critical Questions about Your Home Loan". Both will help alleviate some of the anxiety you feel because of the complexity of the process.
If you want to shop for the best deal, call a broker, a banker, a credit union and a national mortgage lender (like Countrywide) for quotes. In order to be able to compare "apples-to-apples", you'll need to call them all within an hour or two. Why? Because rates change daily and sometimes during the day. Tell them the rate you want and then ask them to include in the quote the discount points (if any are required) to get the rate you want, the origination fee they will charge and the APR.
Agreed rwally with one addition. GET IT IN WRITING from everyone that you talk to. Never just take their word for it over the phone. Tell them you need a good faith estimate from them. It is a very good way to compare. But as I tell all my clients, do not be afraid to stand up and walk away from the closing table if the loan is not what you were told. You do not have to settle for changes at the closing table just to get it closed. I have seen too many people take it in the a@@ at the closing table and still sign just to get it done. Good luck to ya............
Woo hoo, gold stars.... Thank you myfask. Yeah the horror stories. We could probably write a book on what we've seen.
or a Reality TV show I am suprised noone has done one yet
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