Approval from NVR Mortgage

[MrChairman]

If you've been following my story you know I started this journey MANY MANY months ago. We just finally got the approval call from NVR Mortgage. While I am excited, I am going to shop around because I KNOW there are better deals out there. My thinking is that NVR will match any competitors deal I bring to the table to 1) Keep the deal in house and boost their earnings 2)Not having me take their builder incentive money to another lender. Has anyone had any positive experience with a in-house lender matching a more favorable deal from a bank? I don't know what the conditions are but I expect to find out within the next week or so. Another update, they have actually started the framing of our condo building but I'm in MD so a big snowstorm is coming down on us, so I don't expect anymore work to get done on that this week.

[JM-AM]

NVR wants everything in house if at all possible.

You actually gain nothing using NVR. All those incentives you are being offered, are only just paper incentives as one company owns the builder and the mortgage company.

What it comes down to is you are actually paying for everything.

NVR, Ryan Homes, Fox Ridge Homes, NV Homes all have a lousy name around here.

Sometimes they will bargain and change things when you have another offer, but majority of times they want to use those incentives to keep you in house.

[foofighter74]

Yeah, we were not happy with NVR, and though we are hopefully going to be building a Ryan Home starting in a few weeks, we are going through another lender.

[MrChairman]

We still get our builder incentive if we can get a better deal with an outside lender. I have been talking with a few and I'm positive that's the route were going to take. From application to approval with NVR Mortgage took 5 months. Really sad. They were asking us to pay off and pay down things that really had no affect on our score. We finally crossed the 640 a month ago and suddenly we were approved. I am thinking they were doing everyhthing in their power to make the file look as attractive as possible to sell off within 30 minutes of closing.

[foofighter74]

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@MrChairman wrote:

 I am thinking they were doing everyhthing in their power to make the file look as attractive as possible to sell off within 30 minutes of closing.

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This is exactly the issue.  When we filled out an application with NVR, they had filled in everything on the computer, so we were basically just reviewing and signing.  This is when I noticed that they had not included our closing cost assistance in the GFE.  Easily correctible, but even worse...my last name was misspelled on all the documents...which is odd because i have the same last name as my wife and her name was correct. lol. 

Beyond that, i included copies of my pay stub from my yearly bonus going back about 5 years...just to establish that i have received a bonus every year for quite a while.  Well, some genius at NVR included it as monthly income - something i didn't catch until after we had signed the app.  There were numerous other issues as well. 

At least you have your approval...so you're good there. 

[Autumnslight]

We're hoping to start building with Ryan Homes soon, and the thought of NVR makes me shudder after everything I've heard, especially because my application will have some stuff that's not boilerplate "standard" and straightforward. I've already been talking to another mortgage broker for a while who I really like. Based on our initial conversations, the Ryan sales rep doesn't think NVR will be able to approve me, and actually recommended that I try with an outside broker! I need to get it in writing that I'll still get my incentives if I totally bypass NVR, but I'll be very happy if I can.

[foofighter74]

I'm pretty sure NVR wasn't going to approve us either, based on the fact that they don't like that my wife is on a second mortage with her ex-husband that was included in their bankruptcy - even though the home is not in foreclosure, he is paying and living their. 

Our loan officer at NVR commented that they have a good relationship with another lender in case NVR can't approve- and the lender happened to be the one i wanted to go through in the first place.  So we submitted everything to the other lender and they pre-approved us in 3 days, the only real condition that was listed as a pre-cursor to closing was that we needed to get my wife's mid-score up to 640 and we've done that.  We will see if we get approved...we will know either way in about three weeks.  They've put a big pile of gravel on our lot to be spread and used to protect the land from the trucks and equipment to dig...so that got us excited but we will see.

The closing cost assistance from Ryan actually went down because part of it was the origination fee was going to be waived and they claim they can't do that with the other lender.  So i suggested they bump up their closing cost assistance by the amount they can no longer "waive"...we will see what happens with that.

[MrChairman]

Autum, I still haven't gotten this amended in my contract but I have an e-mail from the sales rep stating that if NVR couldn't approve me or match a better deal from a different lender I still get the incentive. I had to try for 2 months just to get that and I basically had to trick the sales rep into sending it.

[foofighter74]

By the way, we got almost no incentives to buy.  It's ridiculous....depending on when you sign your contract, you either get a free finished basement, or the next month, it could be a $400 cabinet upgrade.  Big freakin' deal. lol.  They've since raised the base price on all their homes, and aren't currently offering any incentives on their website for this community as their trying to get sales going on a brand new community also within our buying area.  Our sales rep has been awesome, but NVR mortgage? not so much.

Still, a loan approval is awesome!

Mr. Chairman - i'm curious...you say it took all those months to get the approval...what did you have to get for them to start  building? I assumed you would have needed an approval before they started building?

[MrChairman]

Foo,

We bought in a condo building. The initially told us that they wouldn't start until the entire building was sold. The community we bought in is in a hot up and coming area towards the DC metro area so the lots sold out very quick. I think one or two units fell through but they still started building anyways.