Got some closing cost credit for a new home purchase with a builder, but we just found the contract required us to use the builder's mortgage company for this credit. The sales person indicated "if an outside lender has better rate, a buyer is free to go with that lender and still has the credit," . We asked the sales person to put this in the contract in writing but she said it is not necessary and it's never been an issue before. Should we insist on putting this in the contract?
Closing cost credit and Designated mortgage lender
- Thread starter gld2
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to each their own... i'm the type that love to do taxes, crunch numbers, and a refi ain't that hard... especially if you just got a loan, you have all your docs.. just sign another stack of papers... If the credit is $2000 or more, I would consider it.. since there are alot of no fee closer loans now, all you pay for is your time and prepaid interest..
gld2: verbal agreements are non-binding.. get it in writing if I were you.. again.. why would the builder/lender give closing credit if you don't use their lender? do you have a seasoning clause built in if you go with them? if you do, then you can't refi until that expires... did you shop around? get a couple of GFE's... make sure you don't pay for any fees to get them.. and shoot them to your builder's lender and tell them to match it.. they probably won't because of the credit... crunch your numbers see if its worth it to take the credit versus going with another lender... remember to not just look at the total mortgage payment.. break it down to principal and interest.. I usually count the interest portion to calculate my break even analysis. look at your closing estimates closely.. something always wrong..
ps99472
New member
qwerty said:
to each their own... i'm the type that love to do taxes, crunch numbers, and a refi ain't that hard... especially if you just got a loan, you have all your docs.. just sign another stack of papers... If the credit is $2000 or more, I would consider it.. since there are alot of no fee closer loans now, all you pay for is your time and prepaid interest..
gld2: verbal agreements are non-binding.. get it in writing if I were you.. again.. why would the builder/lender give closing credit if you don't use their lender? do you have a seasoning clause built in if you go with them? if you do, then you can't refi until that expires... did you shop around? get a couple of GFE's... make sure you don't pay for any fees to get them.. and shoot them to your builder's lender and tell them to match it.. they probably won't because of the credit... crunch your numbers see if its worth it to take the credit versus going with another lender... remember to not just look at the total mortgage payment.. break it down to principal and interest.. I usually count the interest portion to calculate my break even analysis. look at your closing estimates closely.. something always wrong..