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We are closing on our new house(New construction) with Pulte Homes. We are first time home buyers. We have agreed to go with the Pulte mortgage when we signed the contract..not sure if we took the right step.
I have good credit score (750 avg), but will be putting less than (<20%) 20% downpayment.
Now I'm ready to close. How should I start bargaining the mortgage rates with pulte mortgage? What are my options, what should be my strategy to get best rate from them?
Is there way to go with other lenders, if I don't get right rate from them?
Has anyone has experience with Pulte Homes & their mortgage company in Charlotte/Concord area.
Get a good faith from other lenders shop it like you would if you were buying a car. You do not have to use any particular lender. The builder may offer some cash towards closing but today's market its in you court really.
Rates for 30yr fixed dropped from 6.25 to 5.5%
(720+ score, 20% down, 1 origination fee, owner occupied, etc)
One thing that pulte is probably offering is the incentives for the home or paying for closing costs. They usually only offer this IF you go with their mortgage company.
you can post in the mortgage forum (city-data), and you'll have other loan officers that can help you with your questions.
Quote:
Originally Posted by chicagocubs
You really do not have a lot of barganing room with rates in this market. Be happy that you have a loan!
all good advise above. Usually new home builders entice you to use their financing company by throwing in incentives (upgraded options to your home, lower interest rate for a period of time, a new car in your garage) but you do not have to use their mortgage co either. Shop around with other lenders. Then take your good faith estimate with you to Pulte and ask them to beat that rate. Odds are they make work with on it.
Im sure Pulte is paying for a large amount in closing costs. If you are planning on staying in this house for a long time, use that money to buy the rate way down. Rates are so low now, and add a big permanent rate buy down and you will be loving your mortgage payment! It is always a good idea to shop around, but they may not pay the closing costs if you don't use Pulte Mortgage.
I am also buying a Pulte home and HAVE to use their lender to get the incentives (rip off). I am a mortgage lender and when I saw their rates compared to what I can give my own clients and blew a gasket. It was .375%-.5% higher than market.
Go to 2 or 3 other mortgage providers. Get full pre-qualifications from them and copies of their detailed Good Faith Estimates. Present these to Pulte Mortgage and require them to honor the "market" rate. They will.
Be willing to walk. You may lose your earnest money but you can sue to get that back under predatory practices. Make sure, if you have a buyer's agent, that he or she fights for you. Hopefully that person has guts and didn't just let you buy a Pulte home for the bonus the builder gives them.
You have rights but not enough people exercise them.
I fought back and got market rate.
The "incentives" the builders give are BS. It is all built in. You are paying one way or another.
I have a borrower now that the builder said she had to use their lender or they wont give any incentives.
The realtor told the builder that they would walk if that was so....
Builder said fine after that
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Pulte mortgage is a rip off
