New build purchase price discrepancy between builder, title company and mortgage lender

[Anonymous]

Hi guys I'm a little confused. I close on my new build home in 20 days. I had a meeting with my mortgage company today to discuss the details of the loan etc.... I have been working with them the through out the whole 8mo build time. I noticed on the loan details it has a purchase price of ~$503,000. Every document from the builder and title company preliminary commitment letter I see purchase price of ~ $518,500

I questioned the mortgage company during our meeting about this and they went to verify the purchase price and said that is what they have and is the correct purchase price. I mean I am sure enough people are looking at the documents between mortgage company, title company, builder etc that it should be correct. I am curious how to get this resolved! I don't want to show up to closing and not close because of an error like this. I mean, I would love to pay the lower price, but I know I am not that lucky.

Anyway, any idea how they got the $503,000 price or what I should do to get it corrected? 

[CreditInspired]

Just some thoughts:

1. Could the 503K be the base price?
2. Did you add anything that could have increased the price to $518K -- upgraded carpet/padding, upgraded kitchen cabinetry, upgraded bathroom, bumpout, etc.?
3. Did you make any changes during the 8-mo building process?

Hope you get everything squared away before closing and GL2U.

[trusty]

Look at your contract. Whatever it says on your contract is the price.

Even if you added something, you would have had to sign an addendum to increase the price.

So, again... pull out your contract and revisit it, plus any addenda.

[NC_Mtg_Loaner]

Yup, sounds like a classic case of lender not receiving or having processed any updated addendum to the contract/purchase price that you may have negotiated during the construction/planning stage.  

How much did the entire home appraise for?

[Anonymous]

It is not the base price. There were updates after the design center many months ago. I would think they would have updated paper work. It's been 6 months since any changes. Once a closing date was set shouldn't the lender get all the updated paper work from the builder and also the title company? 

Anyway, how do I fix this? Tell the lender to get in contact with the builder?

[JVille]

Do you have a Real Estate Agent involved or an In House Sales Agent who wrote your contract?
You need to get to your RE Agent or simply call the title company and ask them to send you a copy of the Full and Conplete Contract to include the Addendum that bring the Price to what the Builder & Title company says is the New Higher Amount.
Get this to your Lender ASAP because if they have the wrong amount and gave that to the appraiser you may need to bring MUCH MUCH more money to closing than any one has told you.

Run don’t walk, get the info yourself and don’t depend on these idiots to do their job.

[Anonymous]

It sounds like change orders or price changes. Look at the PSA and the change ordrs. 

[Anonymous]

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wrote:
Do you have a Real Estate Agent involved or an In House Sales Agent who wrote your contract?
You need to get to your RE Agent or simply call the title company and ask them to send you a copy of the Full and Conplete Contract to include the Addendum that bring the Price to what the Builder & Title company says is the New Higher Amount.
Get this to your Lender ASAP because if they have the wrong amount and gave that to the appraiser you may need to bring MUCH MUCH more money to closing than any one has told you.

Run don’t walk, get the info yourself and don’t depend on these idiots to do their job.

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Thanks for the advice. I contacted my realtor and she contacted the closing agent from the builder to have them send us and the mortgage company the full complete contract with Addendums. The mortgage company recieved it and corrected the purchase price. They were missing an addendum from 6 months ago. The appraisal will happen this week so it is a good thing that this was corrected as you said.