What are my chances???

[StartingOver10]

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@Anonymous wrote:
The LO based the off the sales price of 208k×2.36% which is the rate in Baltimore city 2.24 from city and .012 from state. I was told by the house not being completed and no assessment done he estimated them at the sales price. My thinking is once the assessment is done it will shift in my favor.

I asked about the builder contribution and from the break down its mainly covering the transfer taxes which are close to 4500 in Baltimore.

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Transfer taxes are normally a seller expense.

So do you have enough funds with your $6k and the $20k county/city contribution for your downpayment and closing costs (since the builders contribution is really covering a seller expense).

[Anonymous]

From the breakdown I got when I signed the disclosures it would cover the down payment and my closing costs. I made sure to ask several times to avoid any surprises.

[Lemmus]

...sigh ...shakes head ...let me take a wild guess ...you're using a builder recommended lender?

...sorry 287 ...but I'm having a deja vu relapse here ..."there oughta be a law"

...I once had a dream that life became fair ...then I woke up screaming because in the dream ...everyone got what they deserved.

[Anonymous]

I am. Should I have run for the hills? Of course they set it up where in order to receive to full 5k I had to.

[StartingOver10]

I agree Lemmus - ought to at least be full disclosure and not buried in the contract that half (or more) buyers don't read before signing. I fell for this myself personally back in 1986 where the builder agreed to pay $5k in closing costs and found out the hard way about 8 hours before closing that I needed another $5k.

 Two things to say about that:

1) I never fell for it again - nor have any of my clients

2) At least underwriting has learned to look for the funds before closing so there aren't those kinds of surprises now.

IMO its deceptive.  But builders have been getting away with it for decades.....

[Lemmus]

...SO10, this is why buyer agents and RE lawyers exist 

...sorry 287, no idea what to tell you now, not my area of expertise ...at least you know you've been had (...did they send you flowers?)

...once you've signed a contract, you're pretty much committed unless there is a breach on their part

...if you're otherwise happy, buy the house ...but I'd be looking at everything 3x from now on ...and asking here if you have questions 

[Anonymous]

I appreciate the input. I'm hoping things work out, it's a great house and I'm locked in right now at 3.625 which I'm totally happy with. I'm just at that last hurdle after a long race and am stressing more every minute.

[frugalQ]

S10,

So what you are saying is when the builder gives you an incentive, that incentive is really covering that part of the closing costs which they should be covering anyway?

In my case, transfer costs are included on the total funds to close statement. Then there's a builders credit of 6k included.

So, the true builders incentive to me is 6k less the transfer fee? Wow. That's disheartening. I'm sending my LO and realtor an email today voicing my displeasure.