Do I have to go through the builder?

[nate79416]

Ok I have been with my CU for over 15years and would like to apply for a home loan, can I do that or do I have to go to the builder. I know this builder does not work with real estage agents/buyer's agents. Also do I have to have all of my down payment now or at closing, if we have to have reserves can we use our 401k as backup? Thanks we are hoping for a FHA loan but I'm not sure the CU offers, so many questions here sorry, 

[frugalQ]

you don't have to go through the builder's lender.  however, most builders provide closing cost incentives if you choose to go with their preferred lender.

on the other hand, credit unions usually have lower closing costs as they don't have some of the taxes tacked on that banks will have.  

keep in mind that some credit unions do not do FHA loans.

401(k) can be used for reserves, but be careful if you have any type of loan associated with it...that may impact how much of your 401(k) can be counted.

i suggest you get estimated closing costs from both lenders (the builders and the credit union) and use that to make a more informed decision of which one to use.  sometimes the builder's lenders will mark-up fees whereas credit unions costs are less expensive.  also, the lenders may have different overlays, and that may help you determine which one to use....depending on your financial/credit situation.

i've never heard of a builder who refuses to work with a realtor....sounds kind of shady to me.  

good luck!

[nate79416]

Thank you! Do we have to have our down payment right now or at closing? 

[ezdriver]

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@nate79416 wrote:

Thank you! Do we have to have our down payment right now or at closing? 

Common practice is for your down payment money [not to be confused with your binder/earnest money deposit] to be transferrered to the closing agent just before closing.

Tell us more about that builder. SOunds like a small local builder. Larger builders do not preclude a buyer's use of an agent.