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Old 10-15-2009, 05:30 PM
 
1 posts, read 2,601 times
Reputation: 10

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I'm looking for a tool to somehow compare
--my builders incentives (10K) if I use one of his recommended mortgage lenders (suntrust or WellsFargo)
--with a mortgage from someone else with probably a better interest rate

I need a way to put all the different costs together from each lender..different origination fees etc...

any help here would be greatly appreciated!
closing in Feb-Mar 2010.
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Old 10-15-2009, 06:15 PM
 
Location: DFW - Coppell / Las Colinas
36,359 posts, read 40,173,444 times
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Each lender should be able to generate you a GFE - Good Faith Estimate.

While it is an estimate of taxes, insurance ,ect, it should show you exactly what the lender fees will be. Normally 98% of the time it is difficult for a regular lender to compete with the incentives offered by a builders lender. Make sure before you close, the fees quoted are the fees charged.
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Old 10-15-2009, 07:30 PM
 
Location: Columbia, SC
9,693 posts, read 19,068,584 times
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Quote:
Originally Posted by Rakin View Post
Each lender should be able to generate you a GFE - Good Faith Estimate.

While it is an estimate of taxes, insurance ,ect, it should show you exactly what the lender fees will be. Normally 98% of the time it is difficult for a regular lender to compete with the incentives offered by a builders lender. Make sure before you close, the fees quoted are the fees charged.
What he said. For what it's worth, I've had good experiences with my local WF and Suntrust. The ones to look out for are the small never heard of preferred lenders or in true in house lenders (looking at you Beazer Mortgage).
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Old 10-15-2009, 07:38 PM
 
Location: DFW - Coppell / Las Colinas
36,359 posts, read 40,173,444 times
Reputation: 43693
Quote:
Originally Posted by Brandon Hoffman View Post
What he said. For what it's worth, I've had good experiences with my local WF and Suntrust. The ones to look out for are the small never heard of preferred lenders or in true in house lenders (looking at you Beazer Mortgage).
Yeah, from my experience Pulte (& Centex) is one of the worst about what they quote is subject to mysteriously change. I'm sure there are others.
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Old 10-15-2009, 08:38 PM
 
Location: Baltimore, MD
205 posts, read 764,644 times
Reputation: 170
I think it's more important to look at the bottom line and objectively compare all mortgage options while factoring in the builder incentive. It's also critical to check out the people who will be handling your loan. Sure, it would seem like the builder mortgage companies are in bed with the builder and are less trustworthy, but I've had a very positive experience with Lennar. I had an awful experience earlier this year with Wells Fargo. It's kind of a crapshoot sometimes.
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Old 10-17-2009, 05:21 AM
 
Location: Wake Forest, NC
835 posts, read 3,738,886 times
Reputation: 648
This is what I recommend to my clients who are up against this decision.

Take the builders money!!! Bottom line is I don't have 10K in total fees never mind being able to give it back to you. You have to structure this correctly to make it work in your favor.

Have the builders lender give you the highest rate they can with the minimal fees. Stick with me here. Depending on your loan amount and local fees it may be possible to pay no closing costs as it is here in NC.

So you could have had 4.75% with full fees and 1% orgination from a 3rd party but not 10k in upgrades. Now you have 5.5% with no fees and 10k in upgrades. Your question is "is it worth it?" Definitely, and this is why. As long as you don't agree to a prepayment penalty you can start refinancing the day after you buy the house. Your not paying closing costs twice because you didn't pay them the 1st time.

Get the free upgrades and the rate you deserve. Why choose when you can have both.
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