Established Member
lillygooch4
Posts: 18
Registered: ‎01-29-2012
GO WITH NEW HOME BUILDER?

Hello,

Has anyone found it easier to get a mortgage threw a new home builder vs a outside lender? My husband and I have been working on our credit for over a year and have come from the high 400's to the mid 600's and we are using a VA loan. My husband finally got his mid score to the 620's in July but we were denied  in UW due to a 30 day late that wasn't  12 months til this past Sept. We tried again in Oct with a lender and we had mid scores of 646 and mines 660. But they wanted to remove all the dispute comments off before putting it threw UW well it took way longer then expected and once every dispute was finally cleared the lender has gotten impatient and I ended up getting better results with the help of the forum getting it removed my self. So they stopped returning emails and messages. I was driving one day and ended up finding a new construction site. We spoke to them and they had a home that originaly had been started by someone but they could not get the home due to finances. (great for us) long story short they ran our scores and we are using the in house lender to get that closing cost covered and our scores took a slight drop due to so many pulls.
They said that they can get us in by first of Dec!!!!!! My question is with my husband at 638 and I now at 650 mid we have all disputes removed all items pais no new collections that 30day late was 12months in Sept, will we have problems getting our home? Some had told me the in house mortgages can get you in a home! Please share.............

Valued Contributor
beb86
Posts: 1,117
Registered: ‎10-31-2011
Re: GO WITH NEW HOME BUILDER?
It's best to go with a local lender and keep in mind the will look at the lowest middle score
ccpics2.jpg
Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
Re: GO WITH NEW HOME BUILDER?

The in-house lender has incentive to work harder to get you closed.  Just be careful to compare costs, you should have GFEs from your earlier apps so you just need to keep them honest on rate and fees.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
Take the FICO Fitness Challenge
Valued Member
7ate9
Posts: 42
Registered: ‎10-27-2011
Re: GO WITH NEW HOME BUILDER?

chasmith wrote:

The in-house lender has incentive to work harder to get you closed.  Just be careful to compare costs, you should have GFEs from your earlier apps so you just need to keep them honest on rate and fees.


+1  on both points.  They do seem to work harder to get you approved and closed, but they also seem to pass more fees down to the borrower than local lenders.  But I guess that's a moot point if they're paying your closing costs. :smileyhappy:

 

Best of luck to you!


*******************************************************************************
FAKOS: CS 702 (12/04/13) CK: 710 (12/05/13)
FICO: EQ 712 (11/24/13)

Last app: 11/13/2012
Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
Re: GO WITH NEW HOME BUILDER?
I agree with other posts. You should still ask for closing costs or incentives for working with their lender. Do all of the contracts through your own realtor; don't expect them to be looking out for your interests. Ask for things like free upgrades :smileyhappy:

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Regular Contributor
scmami
Posts: 195
Registered: ‎01-05-2012
Re: GO WITH NEW HOME BUILDER?

+1 to all of the above. In house lender has been the most lenient of all the local lenders we tried. And we are buying a similar "mostly built" home. We got free upgrades and $5k closing costs. We used a realtor for our protection,but found the place ourselves.

Starting FICOs (2/2012): EQ 559 TU 558
Current FICOs (EX and TU Lender pulled 10/6/12): EQ 652 TU 635 EX 647
Matthew 7:1 KJV
Judge not, that ye be not judged.
Established Member
lillygooch4
Posts: 18
Registered: ‎01-29-2012
Re: GO WITH NEW HOME BUILDER?
Thanks for all the well wishes! Yes they are going to cover all the closing costs and we were able to negotiate the lot premium off (7,500). Since we came at the end of year they are also eager to get these houses sold before the end of year so we put a offer in for 12,000 less then asking price. They are trying to get us closed by Nov 29!!!! So nervous I pray this all goes threw.
Frequent Contributor
JPersat
Posts: 299
Registered: ‎05-28-2012
Re: GO WITH NEW HOME BUILDER?

Good luck! We're under contract with DR Horton for a new home. All we're out of pocket is the $250 earnest money (normally $500, but hubby is a peace officer, so they discounted it).

 

This crap is stressful, isn't it?!?


Starting Score: 492 02/12
Current Score: TU: 668 (FICO), EQ: 668 (FICO). EX: 651(lender pull 9/27/12)
Goal Score: 660



Established Member
lillygooch4
Posts: 18
Registered: ‎01-29-2012
Re: GO WITH NEW HOME BUILDER?
Wow our contract is also with DR Horton. Best wishes to you! Please let me know how yours went.