Purchase price of home vs incentives (3%, sales, contract, states)

[dystopian]

Hello, I am trying to understand if the lender who is seperate but preferred by the builder is calculating the 3% closign cost incentive correctly.

My contract states that if I use a preferred lender, which I am, I receive a 3% in closing cost incentive. The contract specifically states, "if a $, it is calculated from the total purchase price.

The builder also gave a $20,000 design center allowance so if the total purchase price was $300,000 the "adjusted" purchase price would be $280,000.

The lender is calculating the total builder paid closing costs off of the "adjusted" purchase price of 280,000 not the actual total purchase price of $300,000.

I am wrong to see a problem with this?

[Rakin]

It's a builder incentive......... You'd be best to ask them so you have no misunderstanding.

Doesn't matter what you or I think, it's what they think.

[AZJoeD]

Usually with builders options purchased through the design center are not considered in the purchase price only the options purchased from the sales office. I think if you read your contract carefully you will see wording to this effect. Builders hold all the cards when purchasing a new home and their contract, which they do not give you time to read, reflects it. Read the contract, if you think you are correct, argue.