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Old 07-31-2008, 09:21 PM
 
16 posts, read 39,196 times
Reputation: 12

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Any pros and cons for using Builder's lenders. Some builders offer incentives if we choose their lenders, there must be some sort of catch.
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Old 07-31-2008, 09:35 PM
 
Location: Lake Conroe, Tx
637 posts, read 3,238,410 times
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Pro's; They give you incentives such as free T.V's, appliances, closing cost etc...

Con's; You will more than likely pay more for your $. Hint; watch the yield spread on the GFE as it will more than likely be wider than the Grand Canyon to pay for the above referenced items as well as to line the pockets of the builders lender.
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Old 07-31-2008, 09:52 PM
 
Location: Houston, Texas
10,447 posts, read 49,682,682 times
Reputation: 10616
Quote:
Originally Posted by Lake Conroe resident View Post
Pro's; They give you incentives such as free T.V's, appliances, closing cost etc...

Con's; You will more than likely pay more for your $. Hint; watch the yield spread on the GFE as it will more than likely be wider than the Grand Canyon to pay for the above referenced items as well as to line the pockets of the builders lender.
And that sure is the truth !!!!
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Old 08-01-2008, 04:43 AM
 
410 posts, read 1,676,858 times
Reputation: 101
Be careful!!!

Google- (builder incentives lenders hobb) and read the article.
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Old 08-01-2008, 07:04 AM
 
Location: Austin & Houston, TX
1,461 posts, read 5,600,751 times
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I would recommend you to shop around. If the builder really wants you business and with the proper representation (realtor) you should be able to receive what they are offering even if you use your own lender.
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Old 08-01-2008, 08:59 AM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 13,746,144 times
Reputation: 4191
They will try to kill you with fees. I was lucky since I used a VA loan so they weren't able to stick me with junk fees, otherwise my closing costs would have been about $2200 higher. They also gave me an interest rate about .3% higher than if I had gone with my bank but I figured it was worth it for a 20k incentive.
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Old 08-01-2008, 09:28 AM
 
Location: Austin & Houston, TX
1,461 posts, read 5,600,751 times
Reputation: 425
Quote:
Originally Posted by chris_ut View Post
They will try to kill you with fees. I was lucky since I used a VA loan so they weren't able to stick me with junk fees, otherwise my closing costs would have been about $2200 higher. They also gave me an interest rate about .3% higher than if I had gone with my bank but I figured it was worth it for a 20k incentive.
30 year fixed?
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Old 08-01-2008, 10:36 AM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 13,746,144 times
Reputation: 4191
Yes 30 year fixed. I got 5.875% interest rate even with the builder's lender so I'm not crying too bad.
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Old 08-01-2008, 05:42 PM
 
410 posts, read 1,676,858 times
Reputation: 101
By the way, know what the laws are regarding new homes in this state.
You are covered for a bad car or toaster, not a bad house.
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