Re: In-House Mortgage Brokers
11-12-2012 06:10 AM
NVR told us that if we get an outside lender and NVR can't match it, we get to keep the 7500 in closing cost. But in our contract it states that you MUST use NVR to get the incentive. Both the sales rep for the community and the loan officer both told us that if they can't match it we will still get the 7500 so we'll see. I hope they stand by their word because they really don't want a holy war with me :-). Starting, they quoted us at 3.75 for interest rate and 4.01 for APR. The going rate in our area is 3.35 with 3.55 APR. This is on top of all of their bs fees.
Yep, this is typical for builders - all the large builders I've worked with do the same thing. They actually get the incentive funds, $7500 in your example, from the extra high rate you pay. Their marketing counts on you not shopping around so you aren't aware of the difference.
IMO its better to take the lower rate and less closing costs with an outside lender, but some people don't mind taking the higher rate and paying higher costs to "get" the incentive.
Be careful with anything they say verbally. If it's not written in the contract, you won't get it. Since both the sales rep and the mortgage rep claim you will get it anyway, have them send it to you in writing. That may help when it comes to actually closing. The best way to make sure it happens is to have an addendum in the contract that specifies that you will get the incentive if you use an outside lender. Ask them. I bet they give you all kinds of excuses as to why they can't supply it in writing.