Closed with a NEW collection that popped up yesterday!

[PRC]

I closed today on my FIRST HOME!!! It feels so SURREAL.  I had a collection that popped up out of the blue yesterday from a debt from 2009 that I knew nothing about (medical) and I was so worried they would re-pull my credit today during closing.  But guess what they did not and my loan is funded, keys in hand and my kitchen is decorated....One thing I learned today by the title company (i did not tell them) is that going with a builder loan co.  is always the way to go when you build a new home.  Why because the loan co. works for the builder and keeps them informed of everything, they typically only pull your credit once (mine did) and when they tell you you're CTC they have completed all of their verification.  Why again because they want to keep doing business for the builder and not make them madd and they fund your loan within 15 mins.  The loan will be sold but most are so why not go through them. 

[StartingOver10]

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@PRC wrote:

I closed today on my FIRST HOME!!! It feels so SURREAL.  I had a collection that popped up out of the blue yesterday from a debt from 2009 that I knew nothing about (medical) and I was so worried they would re-pull my credit today during closing.  But guess what they did not and my loan is funded, keys in hand and my kitchen is decorated....One thing I learned today by the title company (i did not tell them) is that going with a builder loan co.  is always the way to go when you build a new home.  Why because the loan co. works for the builder and keeps them informed of everything, they typically only pull your credit once (mine did) and when they tell you you're CTC they have completed all of their verification.  Why again because they want to keep doing business for the builder and not make them madd and they fund your loan within 15 mins.  The loan will be sold but most are so why not go through them. 

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It's not a bad idea to go through the builder; however, each buyer should also cross check with other lenders to see the best overall loan package.

The builder's lender typically has a slightly higher interest rate (1/4 to 1/2 point higher, sometimes more in high interest rate markets). Especially if they have offered to pay any incentives to the buyer for  closing costs or for extras. The money to pay for those costs is built into the loan rate and or points on the loan depending upon the market.

Even if you choose another lender, that lender will keep the builder informed in most cases. As to funding the loan at the table, that has to do with how your closings are conducted in your region of the country. I'm in Florida and we are a table funding state so the loan is funded right at the closing table when you sign off on the documents. Occasionally a "dry" closing happens, but that is rare.

[PRC]

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@StartingOver10 wrote:

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@PRC wrote:

I closed today on my FIRST HOME!!! It feels so SURREAL.  I had a collection that popped up out of the blue yesterday from a debt from 2009 that I knew nothing about (medical) and I was so worried they would re-pull my credit today during closing.  But guess what they did not and my loan is funded, keys in hand and my kitchen is decorated....One thing I learned today by the title company (i did not tell them) is that going with a builder loan co.  is always the way to go when you build a new home.  Why because the loan co. works for the builder and keeps them informed of everything, they typically only pull your credit once (mine did) and when they tell you you're CTC they have completed all of their verification.  Why again because they want to keep doing business for the builder and not make them madd and they fund your loan within 15 mins.  The loan will be sold but most are so why not go through them. 

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It's not a bad idea to go through the builder; however, each buyer should also cross check with other lenders to see the best overall loan package.

The builder's lender typically has a slightly higher interest rate (1/4 to 1/2 point higher, sometimes more in high interest rate markets). Especially if they have offered to pay any incentives to the buyer for  closing costs or for extras. The money to pay for those costs is built into the loan rate and or points on the loan depending upon the market.

Even if you choose another lender, that lender will keep the builder informed in most cases. As to funding the loan at the table, that has to do with how your closings are conducted in your region of the country. I'm in Florida and we are a table funding state so the loan is funded right at the closing table when you sign off on the documents. Occasionally a "dry" closing happens, but that is rare.

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II'm not sure about other experiences with builders loan officer; but my interest rate is 3.5% on a 30 year FHA loan; which is lower than some of the rates I have seen on myfico.  I don't disagree with searching for other lenders if that is your choice but it worked out perfectly for me.  They only pulled my credit once no other pulls (not even soft pulls) and at first my rate was 3.75, then she said it went down to 3.62, and finally 3.5... I had an awesome experience and if I had to choose between a random lender or a bulder's lender...I would choose the builder's based on my experience.  I know everyone's experiences are different but my recommendation if ever asked would be to go through the builder. 

[Anonymous]

Another good reason to go with a builder is because the loan company works FOR the builder so

they are going to do everything in their power (within reason) to make sure that the loan goes through for you.

I've worked with a builder before in the past who had an outside lender and they were totally **bleep**ed up !

I had a house built with a pre approval from the lender, throughout the entire process the lender told the builder everything was good

then when the house was totally complete, the lender said I could not get approved.  They sold the house the next month

didn't work with me or anything.. terrible company.

[K_J]

PRC, If you dont mind me asking which lender did you use?

[PRC]

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@K_J wrote:

PRC, If you dont mind me asking which lender did you use?

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Sorry for the late response...I have been real busy this week.  My builder was Highland Homes and I went through Highland Loan Souce.  They used prime lending for me.  I'm not sure who my loan will be sold to but I know it will be sold.

[K_J]

thanks and congratulations

[Shogun]

Congrats!

[PRC]

Thank you both! It has really been a wonderful experience.  This is my first home and more than likely my last..