issues with using a outside lender for a new home purchase?

[villiagepeople]

I'm looking to use an outside lender for my new home purchase... and of course the new home sales people tried to scare me by saying that they've had some people try to go outside only to have the loan not fund.  The specific example was something about the City of Irvine doesn't give you some sort of residency certification until after 30 days after closing, yet the lender needed it to fund... never heard of that.  As I stated before I know 3 people who bought new homes... in the last couple of years, 2 went with the builder's lender cause they got 5k plus in incentives, and then the other one got market rate with Wells (his builder's lender), which was surprising... locked in September, 2010 with no points and 2k credit @4.375 fixed for 30 years.

In any case, my question is to people who bought new homes in the 2010 collection or any new home in the past couple of years (after the crash), did you go or try to go with a outside lender?  For those that did, did you have any issues getting an loan outside?

TIA

 

[sonoma]

We always intended to, but we never did. Surprisingly bofa (sonoma's preferred lender) gave us a very good rate that our outside lender couldn't match.  We were very happy how smooth every went.  Good luck!

 

[Irvine2Irvine]

I'm looking to use an outside lender for my new home purchase... and of course the new home sales people tried to scare me by saying that they've had some people try to go outside only to have the loan not fund.  The specific example was something about the City of Irvine doesn't give you some sort of residency certification until after 30 days after closing, yet the lender needed it to fund... never heard of that.  As I stated before I know 3 people who bought new homes... in the last couple of years, 2 went with the builder's lender cause they got 5k plus in incentives, and then the other one got market rate with Wells (his builder's lender), which was surprising... locked in September, 2010 with no points and 2k credit @4.375 fixed for 30 years.

In any case, my question is to people who bought new homes in the 2010 collection or any new home in the past couple of years (after the crash), did you go or try to go with a outside lender?  For those that did, did you have any issues getting an loan outside?

TIA

I bought Sonoma and the "preferred" lender was BofA.  I did not give them much thought thinking that they would not be competive.  It turned out that they weren't too bad on their rate.  Not the lowest but below average rate.  I still went out on my own and got quotes.  The Amerisave.com happened to have the lowest rate at the time, August 2010.  It turned out that the BofA has competitor match program for the new houses they were selected to participate as a preferred lender.  I gave BofA a call even though I was expecting them to say that they could not match the rate and the fee.  To my surprise, the BofA matched Amerisave.  The rates were same but BofA had zero fee while Amerisave.com had $3600 credit towards the closing costs.  I was pleasantly surprised and went with BofA.  The BofA was beneficial for me since they were the "preferred" lender of the builder and I would not have to worry about paying penalty if the COE gets delayed due to lender not funding on time.  If I went with an outside builder and the COE gets delayed due to the lender, the purchase contract called out approximately $200 per day penalty that I would have to pay.  I am not sure if they would actually enforce the fine, but I did not want to be in a position to find out.

I suggest you shop around and find the best rate, then see if the "preferred" lender would match the terms.  If they are close, go with the "preferred" lender and save yourself a lot of potential headache.

 

[nytransplant]

I too went with the BofA lender for my new home.  I was going to use an outside brooker but he couldn't match (or didn't want to give up any of his profits).  I got a great rate with BofA.  If you have good credit then the builders lender should be able to give you a good rate.