2017/2018 New Construction!

[ashjt2011]

Home Location:  Plymouth, MN

Purchase Price: $339.800 with chosen options (Might go up once I go to the design studio in a few weeks)

Property: Townhome

Submitted Offer on: NA

Signed Contract on: 08-25-2017

Ernest (Deposit) Money: $12000

Lender Name: First Equity (They are the broker)

Notes about Lender:  Excellent loan officer - has helped me with several properties

Type of Loan:  Conventional 30 yr fixed

Inspection:

Purchase contract addendums:

Loan Rate: Cannot lock yet. Way to far out

Application submitted: Not yet

Loan Processing: 

Mortgage Commitment Letter:  Pre-approved 08-23-2017

Appraisal Ordered:  

Appraisal Completed: 

Went to underwriting: 

Underwriting Complete: 

Final Approval: 

Construction Status: Haven't even broke ground. They have sold the neighborhood way far out.
Walk Through: 

Closing Date: March/April 2018

*will update throughout process**

Questions for you guys - the builder is being very hard to work with because I won't use their lender. They said I must obtain a mortgage conditional approval right now and get it to them by mid-september. My lender thinks this is ridiculous, and from what I've seen on this forum - nobody does the mortgage approvals 8 months out, they wait till its several months before closing.  Does this seem right to you?

[Anonymous]

Seems fairly common to want at least conditional approval from a in house lender. Mentioned frequently on here even if in the end the consumer went with a different lender.

[ashjt2011]

I've read about peoples conditional approvals, but they are much closer then 8 months out, without the ground even being broken for several more months. Conditional approval basically says your file is ready to go, pending the appraisal and such. With the closing being 8 months from now, there could be a myraid of things that could happen to change the picture. Not saying they will. But, its a possiblilty. People on here i have seen get the conditional approval when closing is just a couple months out.

The reason we are waiting a couple months to do the financing is to allow my Ch. 7 to age to 4 years and for my funds to finish seasoning. Credit, finances, job history, DTI - all that is fine.

I did mention this to another builder, that was my runner up for the neighborhoods I was looking at, and they said their company wasnt the same with conditional approvals being done within 2 weeks with such a far out closing.

[Anonymous]

Well looking through the building thread might show you others that have been in the same boat. Looks like Dvasil went to underwriting April 4th and just closed on the home within the past week or 2. Why would a company begin building your home without making sure you are qualified? They trust their inhouse lender and know they get the deal done.

I will say that when buying a already built house you cannot even sign the contract for purchase until the wait period is up even if closing is scheduled for 45 or more.

[ashjt2011]

I have the pre-approval to show I am credit qualified for the home. Its not like I am running into this deal without anything. I could see how it might be different if I didn't have the preapproval.

[Spider07]

When I signed my contract to build my house in Dec 2016, out builder required a pre approval letter within 30 days.  I used one of their preferred lenders for this part, as they work closely with them (not an in house lender though).  I have since swticed to a lender I prefer now that we are getting close.  Most builders here that have an in house mortgage company require you to get pre approved through them, regardless of the lender you are going to actually use.  It's not uncommon for a builder to want a reassurance from a mortgage company they trust and have worked with.  I don't think the pre ferred lender actually sent anything to an UW, but they did the AUS and got approved eligible and issued a letter stating the conditions: apprasial, inspections, etc.  

[Anonymous]

We signed our contract in February and had to show a pre-approval within 2 weeks. Our close date is November 3.