I have had some clients leverage the fact they are buying the home so they want to use their lender and have been able to get the builder to agree to still give them that builder credit.. sometimes it might require a slightly higher down payment sometimes not.. but yes other times they won’t allow it
But the main problem that I face, is when builders advertise interest rate that is about 3 or 3% lower than the market rate. This lures first time homebuyers in, and they think that they got a great deal. So these FTHB end up chasing the rate, instead of the home. What they don’t realize, is most of these builders over inflate the price of their homes in order to buy down the rate this low. I wish we can see some more strict regulations when builders perform bad lending practices by only offering incentives with their in-house mortgage
That's not gonna happen. Those are called builder forward commitments. They actually make owning a home more affordable. But, you are correct, the home prices stay at the top of the market. You could always work for a lender who offers forward commitments and use that to land builder accounts?
I have had some clients leverage the fact they are buying the home so they want to use their lender and have been able to get the builder to agree to still give them that builder credit.. sometimes it might require a slightly higher down payment sometimes not.. but yes other times they won’t allow it
Yep. Pretty much how it has been for 20+ years.
Only times i beat a builder is when borrower was eligible for a grant. Lower my comps + grant , was able to come close to builder.
Sometimes we gotta do what we gotta do. You now have a client for life. Congrats!
Thanks for doing this DO
My pleasure. We are going to be moving videos like these over to a new UA-cam Channel in 2025. Stay tuned.
But the main problem that I face, is when builders advertise interest rate that is about 3 or 3% lower than the market rate.
This lures first time homebuyers in, and they think that they got a great deal. So these FTHB end up chasing the rate, instead of the home.
What they don’t realize, is most of these builders over inflate the price of their homes in order to buy down the rate this low.
I wish we can see some more strict regulations when builders perform bad lending practices by only offering incentives with their in-house mortgage
That's not gonna happen. Those are called builder forward commitments. They actually make owning a home more affordable. But, you are correct, the home prices stay at the top of the market. You could always work for a lender who offers forward commitments and use that to land builder accounts?