Did you use Designated Lender (To all recent new home owners)

[hidden]

To all recent new 2010 Woodbury home owners (congrats btw!):

I talked to a few sales agents in Woodbury today and they all mentioned about pre-approval by designated lenders.

Just curious, did you use the seller's designated lender when you bought your new homes?
Any real advantages going with the designated lender? I'm new on this as I'm still renting for the time being but looking to buy if possible in a few months.

Thanks.

 

[Irvine2Irvine]

There's really no benefit to go with the designated lender unless they give you the best rate.
You are allow to go with any lender as you please.
In my case with Sonoma, they require 45 day rate lock.  I would rather do a 30 day rate lock, but that's one of the things I signed up for when I purchased a new construction...

 

[nytransplant]

There's really no benefit to go with the designated lender unless they give you the best rate.
You are allow to go with any lender as you please.
In my case with Sonoma, they require 45 day rate lock.  I would rather do a 30 day rate lock, but that's one of the things I signed up for when I purchased a new construction...

I heard about the 45 day paperwork requirement from the escrow company but where does it mandate a 45 day lock in the paper work?  I figured was going to get a 60 day lock anyways +/- a few days.

 

[usctrojancpa]

I hope that lender provides a free one-time rate float down.

 

[Irvine2Irvine]

There's really no benefit to go with the designated lender unless they give you the best rate.
You are allow to go with any lender as you please.
In my case with Sonoma, they require 45 day rate lock.  I would rather do a 30 day rate lock, but that's one of the things I signed up for when I purchased a new construction...

I heard about the 45 day paperwork requirement from the escrow company but where does it mandate a 45 day lock in the paper work?  I figured was going to get a 60 day lock anyways +/- a few days.

The 45 day rate lock is specifically spelled out on the contract.  The sales people at Sonoma also reiterated the 45 day lock.
Just curious, why would you do a 60 day lock unless you have a very strong conviction that the rates are headed higher.  60 day lock will cost you extra cash to lock in compared to 45 or 30 day rate lock.

 

[hidden]

Actually I'm surprised that the contract requires a 45 day rate lock.
So does the 45 day requirement mean that you have to decide on which lender to go with 45 days before the close date?

So sounds like most of you are using your own lenders?

The 45 day rate lock is specifically spelled out on the contract.  The sales people at Sonoma also reiterated the 45 day lock.
Just curious, why would you do a 60 day lock unless you have a very strong conviction that the rates are headed higher.  60 day lock will cost you extra cash to lock in compared to 45 or 30 day rate lock.

 

[mikeirvine]

For Sonoma I went with outside lender ... Sonoma BOA agent was not helpful as his rate are high for 45 day = 60 days lock and knows that once you reach 45 days u have no options but to go with their rates.

The BOA manager starts calling me after I went with other lender and I'm very happy with my outside agent rates .... BOA tried to get me back by counter offer 10 days before closing .... but I refuse as they try to screw me with the 45 days and refuses to match the outside lender and give me all kinda problems.

I'm happy I take my loans outside as if I go with them with the 45 days loan my rates will be much higher.... with my outside lender I still get to adjust my loan rates till the end. Anyway I didn't borrow much so it not that big deal on the rates.

Mike

 

[Irvine2Irvine]

For Sonoma I went with outside lender ... Sonoma BOA agent was not helpful as his rate are high for 45 day = 60 days lock and knows that once you reach 45 days u have no options but to go with their rates.

The BOA manager starts calling me after I went with other lender and I'm very happy with my outside agent rates .... BOA tried to get me back by counter offer 10 days before closing .... but I refuse as they try to screw me with the 45 days and refuses to match the outside lender and give me all kinda problems.

I'm happy I take my loans outside as if I go with them with the 45 days loan my rates will be much higher.... with my outside lender I still get to adjust my loan rates till the end. Anyway I didn't borrow much so it not that big deal on the rates.

Mike

Why would you get stuck with BofA once you reach 45 days?  Is that what Sonoma told you?

 

[nytransplant]

There's really no benefit to go with the designated lender unless they give you the best rate.
You are allow to go with any lender as you please.
In my case with Sonoma, they require 45 day rate lock.  I would rather do a 30 day rate lock, but that's one of the things I signed up for when I purchased a new construction...

I heard about the 45 day paperwork requirement from the escrow company but where does it mandate a 45 day lock in the paper work?  I figured was going to get a 60 day lock anyways +/- a few days.

The 45 day rate lock is specifically spelled out on the contract.  The sales people at Sonoma also reiterated the 45 day lock.
Just curious, why would you do a 60 day lock unless you have a very strong conviction that the rates are headed higher.  60 day lock will cost you extra cash to lock in compared to 45 or 30 day rate lock.

Some how the 45 day lock was left out.  That's alright.  The reason I would get a 60 over a 45 day is to lock the rate and the pts are not very different for these two lock periods

 

[readytobuy]

i agree with jumpcut. I was trying to ask for deals but they dont give any incentives to go with their lender so i chose my own

 

[akim997]

General experience with in-house lenders is not good.  Everyone I know who bought a new home, that used the inhouse lender, I felt they did not get a good deal.  Back when I bought by first home, I used the inhouse lender and got 6.75% on a 30yr fixed.  At the time it was OKAY, but I refi'd in a year down to 5.25% (and even lower later). 

The only time you would use the in-house lender is if there are incentives (i.e. $30K towards closing costs or upgrades)...

If anyone needs a good lender, message me.  I'm not in the mortgage business, nor do I get paid by mortgage people... just here to help. 

 

[mikeirvine]

The rates are really low now it will be nice to shop around till the very end without have to commit to 45 days lock.
Sonoma & BOA told me I will have to stay with BOA by default after the 45 days by the contract I signed at that time.

My friend using BOA lender from carmel is getting lower rate than Sonoma Lender BOA offering at that same time ..... why same BOA lender at the same time but sonoma BOA agent is offering a higher rate .... someone is trying to screw sonoma buyers.

If you go with the outside lender you don't have to be constraint to the 45 days, you can shop around and still use BOA later .....  but not with the Sonoma BOA agent who makes empty promises that will match outside lender but refuse to when I shown him everything what my agent is offering before the 45 days deadlines ..... the BOA manager is the one that called back at the very end to try to get my business, but I'm happy with what my agent offers as she work very hard to get my business.

It so stupid for sonoma BOA agent not to be honest with the market rates and try to screw buyers with that 45 days lock. They can make 100 of thousands from interest but they rather try to screw you for a few thousands with that stupid 45 days contract that they didn't mention when I signed the contract, only reminds you a week before the 45 days that your loan will default to BOA.

I'm very happy with my new home. Those sonoma guys supervising the construction and after sale repairs are super great.

Good luck with the rates, they are super low now.

Mike



 

 

[Irvine2Irvine]

The rates are really low now it will be nice to shop around till the very end without have to commit to 45 days lock.
Sonoma & BOA told me I will have to stay with BOA by default after the 45 days by the contract I signed at that time.

My friend using BOA lender from carmel is getting lower rate than Sonoma Lender BOA offering at that same time ..... why same BOA lender at the same time but sonoma BOA agent is offering a higher rate .... someone is trying to screw sonoma buyers.

If you go with the outside lender you don't have to be constraint to the 45 days, you can shop around and still use BOA later .....  but not with the Sonoma BOA agent who makes empty promises that will match outside lender but refuse to when I shown him everything what my agent is offering before the 45 days deadlines ..... the BOA manager is the one that called back at the very end to try to get my business, but I'm happy with what my agent offers as she work very hard to get my business.

It so stupid for sonoma BOA agent not to be honest with the market rates and try to screw buyers with that 45 days lock. They can make 100 of thousands from interest but they rather try to screw you for a few thousands with that stupid 45 days contract that they didn't mention when I signed the contract, only reminds you a week before the 45 days that your loan will default to BOA.

I'm very happy with my new home. Those sonoma guys supervising the construction and after sale repairs are super great.

Good luck with the rates, they are super low now.

Mike

I guess it really depends on the agent and how much he is willing to cut his commission to make the deal.  He is probably getting enough business from the home buyers not paying attention to the 45 day lock deadline.

The rate came back down today after going up yesterday from last week.  I will have to monitor the stock market today to gauge where the interest will go tomorrow.

 

[fe9000]

I never dealt with the 45 days lock requirement.  Our incentive was $1500 credit which was nothing.  So I went with outside lender with a 30 days lock.  Agree with Mikeirvine, rates are really low right now and lender's profit margin are getting fatter.  So do your shopping and if you find the right one who is willing to deal you will get a good deal.  Then again, still need to watch out for "Too Good to Be True".  I believe in paying a little more to ensure a smooth closing and honest transaction.  Buying a home is stressful as is, you don't need more.

 

[waitin4ever]

We went with the builder's lender for our loan for the Monterey home that we bought. Actually we got a good rate 5% prevailing at that time.
I shopped quite a few other brokers. Cheapest was on the internet. Amerisave. But they wouldn't underwrite for condo's unless they were
75% occupied. So stayed with BHS. I think i could have got an extra 1000/- depending on if i had gone with someone else and based on when
i had locked with someone else. The rate and fees were fluctuating by about 1000/- fee almost every other day.

The problem came when the greece issue happened and rates dropped to 4.75% or 4.875% depending on some upfront cost. but it was
within the 20 day window of my closing date. I was told by BHS (builders lender) that they would match my rate from anyone else. But once it got to that
14 day -20 day window they didn't honor that committment. But i didn't go elsewhere in the last minute because i didn't want to mess with
the condo approval etc in the end.

Bottom line is either way all lenders are looking to maximize their returns. And todays environment the rates and fees change every day.
So pick someone you are comfortable with and go with them. Also if you are getting approved now you will probably also get approved  for a refi
in future with lower rates. I do believe rates are going to 4% or lower before they go back up.

SGIP, If you are reading this thread please chime in.

I never dealt with the 45 days lock requirement.  Our incentive was $1500 credit which was nothing.  So I went with outside lender with a 30 days lock.  Agree with Mikeirvine, rates are really low right now and lender's profit margin are getting fatter.  So do your shopping and if you find the right one who is willing to deal you will get a good deal.  Then again, still need to watch out for "Too Good to Be True".  I believe in paying a little more to ensure a smooth closing and honest transaction.  Buying a home is stressful as is, you don't need more.

 

[nytransplant]

There's really no benefit to go with the designated lender unless they give you the best rate.
You are allow to go with any lender as you please.
In my case with Sonoma, they require 45 day rate lock.  I would rather do a 30 day rate lock, but that's one of the things I signed up for when I purchased a new construction...

I heard about the 45 day paperwork requirement from the escrow company but where does it mandate a 45 day lock in the paper work?  I figured was going to get a 60 day lock anyways +/- a few days.

The 45 day rate lock is specifically spelled out on the contract.  The sales people at Sonoma also reiterated the 45 day lock.
Just curious, why would you do a 60 day lock unless you have a very strong conviction that the rates are headed higher.  60 day lock will cost you extra cash to lock in compared to 45 or 30 day rate lock.

I spoke with Sonoma and the escrow company  today b/c i just wanted to double check mortgage requirements.  Their only requirement is that you submit and stick with a lender at 45 days (not a 45 day lock).  After that point you can get whatever lock period you want.  The rates are fluctuating a bit but I'm hoping for a 4.5 or lower.

 

[sgip]

Lenders income is actually thinning. As loans are rapidly being pre-paid by refinancing, their margins are lowered. Yes, they may make it up on volume, but that refi volume isn't going to last forever. If you remember the 2004 refinance boom, once the music stopped there weren't enough chairs to go around. Those lenders stuck standing branched off into 1% Option ARM's and Sub-Prime lending. Greenlight Financial and other DBag lenders crashed in 2008 when that party ended. In 2010 - 2011 there won't be another lending vehicle for these companies to shift to. I'd guess we've got another 6 to 10 months left in this refi boom, then the layoffs begin.

Back to the subject at hand: You can get a good deal from the inhouse lender if you go in prepared. They will usually burp up their "best offer" - which isn't - causing you to shop around, then haggle with the IHL to reduce their fees. It's a hassle. I suggest going in  to your deal with "best terms" from a real lender (not Amerisave, or other Internet lenders. The IHL will simply scoff at you since these companies won't lock or close unless optimal conditions exist). Let's say you get a Branch provided BOFA quote at 4.5%, bring that in. Tell the IHL that's your best deal. Since it's from a known company, the IHL will find that their terms will come reasonably close to what you want. That will keep your negotiation struggle with the IHL down to a minimum.

Chance favors the prepared mind. Be that person.

My .02c

Soylent Green Is People

 

[Irvine2Irvine]

I spoke with Sonoma and the escrow company  today b/c i just wanted to double check mortgage requirements.  Their only requirement is that you submit and stick with a lender at 45 days (not a 45 day lock).  After that point you can get whatever lock period you want.  The rates are fluctuating a bit but I'm hoping for a 4.5 or lower.

I talked to the Sonoma office about the rate lock again about a week ago and complained a little.  After the sales office contacted the corporate office, they came back and told me that since they don't think the rate is not going to move much in the near future, I can submit the lender approval at 45 days and do a 30 day lock on the loan if I wish.  That made things a little easier for me to shop around for a loan.

But they do have the right to force you to do a 45 day lock.  The final sentence on Sonoma Purchase Contract Addendum "D" paragraph 1.2 states: "Buyer must lock in an interest rate on a loan program no later than forty-five (45) days before the Close of Escrow"

 

[nytransplant]

I spoke with Sonoma and the escrow company  today b/c i just wanted to double check mortgage requirements.  Their only requirement is that you submit and stick with a lender at 45 days (not a 45 day lock).  After that point you can get whatever lock period you want.  The rates are fluctuating a bit but I'm hoping for a 4.5 or lower.

I talked to the Sonoma office about the rate lock again about a week ago and complained a little.  After the sales office contacted the corporate office, they came back and told me that since they don't think the rate is not going to move much in the near future, I can submit the lender approval at 45 days and do a 30 day lock on the loan if I wish.  That made things a little easier for me to shop around for a loan.

But they do have the right to force you to do a 45 day lock.  The final sentence on Sonoma Purchase Contract Addendum "D" paragraph 1.2 states: "Buyer must lock in an interest rate on a loan program no later than forty-five (45) days before the Close of Escrow"

I doubt they enforce this as the escrow company new nothing about it.  Shows you how well they can bury things in contracts.  I'm still about 90 days about but I'm a bit worried about the rates.  Some forecasters have the bottom occuring in October but I'm not so sure.  I jsut have to cross my fingers.

 

[Irvine2Irvine]

I doubt they enforce this as the escrow company new nothing about it.  Shows you how well they can bury things in contracts.  I'm still about 90 days about but I'm a bit worried about the rates.  Some forecasters have the bottom occuring in October but I'm not so sure.  I jsut have to cross my fingers.

When I was at the sales office a few weeks ago, one of the sales person was adamant about it.  But, then again, I don't think they will do anything if you do a 30 day lock and close on time.  No loss for the builder.
However, if the close of escrow gets delayed solely due to the lender delay, the contract has statement indicating that they have the right to charge you daily fee.  Not sure how hard they will try to enforce that but they could.