Using the Builder's Lender? Pay attention....

By
Real Estate Agent with Call Realty, Inc.

Using the Builder's Lender?  Pay attention....
by Kaushik Sirkar, Chandler REALTOR®
Chandler AZ Real Estate

People buy new homes all the time.  They get mortgages on these homes all the time and typically (often incentive-based) they use the builder's preferred lender.  This is commonplace.  Its also somewhat different than when purchasing resale homes.  When purchasing a resale home, a Realtor® will often recommend a few tried and trusted lenders.  In either case, as the agent, I stay very engaged with the mortgage process.

Well here is something scary.  A large national builder is being investigated for potential fraud within its mortgage division.  What exactly are we talking about with this fraud?  We don't know.  I'm guessing the details will come out in the near future.

What is the lesson here for home purchasers and their agents?  Hard to say until these details come out.  But pay attention.  Look over all the details.  Make sure all data is factual and nothing is being fudged.  If its too good to be true, then it probably is....

Thanks for Reading :)

Kaushik Sirkar, Chandler Realtor®
http://www.homesphx.com

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Location:
Arizona
Tags:
chandler real estate
phoenix real estate
arizona real estate
beazer homes
mortgage fraud

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Rainer
99,626
Kaushik Sirkar
Call Realty, Inc.

Ardell - You are absolutely correct.  Too often the enticement for using the builders lender is too high.  We must, however, as agents perform our due diligence whoever the lender is.

Ben - And hopefully forums like AR will serve to educate the consumer to help prevent fraud from occurring...

George - Absolutely!  I mean we're talking a major national builder, not just some joker doing loans out of his trailer....

Tchaka - I would think that in some cases, you would HAVE to use the builder's lender to qualify for the full incentives, no?

April 03, 2007 02:32 AM
Rainmaker
123,302
Tchaka Owen
Keller Williams Realty

Kaushik,

I'm attaching an article for you to read.  There's one case that talks of a builder tying incentives to using their preferred lender.

http://creditboards.com/forums/index.php?showtopic=217519

- Tchaka 

 


April 03, 2007 03:28 AM
Rainmaker
111,077
Steve Dalton
Northwest Indiana Home Builder
219-465-8352

I will say, as I have on other posts, that in most cases the builder is merely protecting their client from the host of terrible lenders out there, the sub-prime meltdown merely proves this point.

Builders have to know if the lender can really make the loan, and frankly a lot of lenders can promise the realtor and the client, and then at the end can really mess things up.

April 03, 2007 04:24 PM
Rainmaker
123,302
Tchaka Owen
Keller Williams Realty

Maybe that's the case in Valparaiso, but where I've been, many of the builder lenders are not A-list lenders.  And builders are more interested in their own preservation, not that of the clients.  So, I do not agree with your statement.

- Tchaka 

 

April 03, 2007 07:58 PM
Rainer
99,626
Kaushik Sirkar
Call Realty, Inc.

Tchaka - Great article, thanks!

Steve - I think its really a case by case basis.  I won't necessarily claim the builder's lender can't get the job done in a majority of cases...but I do seem to encounter builder's lenders that do charge a little too much....

April 04, 2007 01:55 AM
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Kaushik Sirkar

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