Thank you. This is very informative. We just signed our contract and our total home cost is $321,739. Since we exceeded 15% of our total upgrades we paid $13,269. So our new loan amount is $308,469. We are currently working with three potential lenders. They told us we could switch lenders 30-40 days prior to closing. They really are pushing for the KBHS loan. However, their pre-approval numbers didn’t make sense like you said.
Thank you so much for your review of KBHS we started out with them but we noticed they started getting sketchy as hell later in the process and honestly I couldn’t agree more it’s not with the incentive to feel with that horrid me company. In home, hardly no issues, KBHS need a lot of help
It's still good to check with their provider, and then take that approval to a lender you want to work with, within two weeks(two week grace period for credit runs). Why? Because you can be like "well the KB lender is willing to pay x,xxx amount to the closing costs and has provided an interest rate of x.xx%. Can you guys do better?" Treat it like buying a car. You take your quote, and go somewhere better to get a better deal, but not without that quote/bargaining chip.
All mortgage lenders have strict guidelines with applicants. There are some lenders that offer beneficial products but the application process is all the same. Just remember the big 3 when applying for a loan which 1. Debt to income must be low. Get rid of all credit card, auto, student and personal loan debt. This is the biggest indicator for a lender to decide if you can afford the mortgage. This is a huge important factor. 2. Have plenty of liquid assets, i recommend at least 6 months cash reserves on top of your down payment. 3. Credit score. This is what decides your interest rate. Technically you really only need a 600 and up score to get a mortgage but the higher the better.
Thanks for the tips! Unfortunately with the Covid changes last year, even with a typically "good" credit score, the bar was raised and we no longer qualified for the conventional loan we wanted. But in 6 months, we've raised our credit and are in the process of refinancing already to our desired loan.
Wow!!! All that would make me want to say forget it. Especially after you tried to work with them, but still getting the run around. Hope that thru all that your happy with your home.
fostbobb we are very happy with our home and with the rest of the KB Home experience! It was just the loan part which I’m sure getting a loan in general is normally a pain in the butt. Lol
We can relate completely with your experience. We have found that what they say and what they do are different as to meeting deadlines and getting back to us with updates. They have not stuck with their estimate of costs on the disclosure including raising the interest rate by a little more than 1% and not protecting us with a loan interest lock as we requested from the very beginning. So what is a disclosure for if it means nothing? When we looked at the calculations that they made in relation to or DTI they were completely wrong; no idea where they even got the numbers. We felt that they were making calculations as to make us look bad so they could take advantage of us with extra fees, charges and higher interest. Note, my wife is an accountant so the numbers we gave them were very accurate and we only had one debt; a student loan payment. Like you said we thought that being part of KB would make the whole loan journey seamless, less stressful, and though delusional pleasurable.
BEWARE: RE: The Appraisal of your KB home! If you use another lender your appraisal may or may not "make value" because it will be completely objective. This is GOOD. If you use their lender your house WILL 100% appraise for at least what you paid and likely a little more BUT this is NOT good. Here's why...The lender uses ONLY appraisers that will "make value" EVERY single time...period. (I know because I worked for them for two weeks until I didn't and was "counseled" to which I promptly fired them). One of my buddies was OK with basically giving them fruadulent appraisals so he got all their work. The problem will come when you try to sell or refinance and all of a sudden you are "upside down" $20 - $40K on the value because this appraisal WAS subjective. I would avoid their lender unless you are getting at least 1 point discount on the loan.
Everything you expressed sounds about right with many banks and some lenders that is why having a real-estate agent as a back up to over see the process is vital and a good moral real estate agent will have a preferred list of lenders to work with ... I only recommend dealing with all this hassle if you are ever offered a big sum toward closing title and survey
@Turks and Chaos, did you have any issues with the appraisal coming in lower than the purchase price? My fiance and I are worried about the comparable sales here in Socal and having to come up with 10-20k cash to cover the gap.
So frustrating! I will say, I haven't had any more issues with the actual loan and paying my mortgage since the initial hiccups. And we already qualify to refinance with another company so we get to make a better decision on a lender, just 6 months later.
We have been having the worst!!!! Experience with KBHS they actually harassed my husbands employer to the point that they won’t speak to them directly anymore
This video was much needed! Like you said you can’t find ANY reviews on KBHS and I swear I can relate to so many things you’ve stated down to the loan processor being in Vegas and Im Cali. I’m definitely going with my broker. THANK YOU!THANK YOU! THANK YOU!
Thank you foe this video! We are just starting the loan process with them and got a crazy number for estimated closing. We already had a broker but just wanted to see what we got with them. They are sketchy!! We still want our home to be built by them but we are using our broker. Would you still recommend your home be built by them?
Oh my goodness. This scares me more. We’re currently working with them now and are already having some of these issues. We’ve received 4 different disclosures already. All with different numbers. No one can explain why the numbers are different. We also have someone is Las Vegas & someone here in Arizona where we are. I hope they get it together. OMG.
I know it! Super stressful, But we got through it and were able to refinance with a different lending company within a year after closing with original loan. Don't be afraid to continue questioning them, someone has to give you information that makes sense, keep asking to speak with someone else until they can figure it out. Good luck!
Going through the same thing with them now so unorganized and the original loan officer we had from the beginning got fired so they switched loan officers during processing once we got the new loan officer she was like we have to start the process all over again so as of today we are 90 days from expected closing and we don’t even have an approved loan so we may or may not get our house and I gotta call almost every day just to try and get some info about the application process…very stressful…I hope that it gets better but we are in a bad spot with them right now…thanks for sharing your experience
Hello Wilson. Did you later close with them ? We are going thru the same thing now.Just changed our loan officer last Friday. Can please share your experience after the new loan officer was assigned
@@alabeplenty hello 👋 no we are not expected to close until august but my loan had to be completely redone so had to go through the entire process again but this loan officer has been much better and more transparent and up front so just hoping that it ends well I will update once we close
When did they tell or when did you ask how much money you were supposed to bring at closing?? I don’t want them to surprise me at the time of closing :( We just finished signing the purchase agreement for a new home build and there wasnt a number next to “closing costs”. Was there supposed to be a number in the purchase agreement (they said they will be covering $5k in closing costs) or will they be adding it later? Thanks
So they strong-armed you into what they wanted? Glad I already live in a home. I'm just going to bring this up when initially talking to them and tell them if they are going to try this I don't want to waste my time with them. As for the financing people? I work for a large company that sells across the U.S. and am the only person in my position! I support like 5 different business lines. So I understand your frustration, but that is more KB being cheap on hiring people for their financing dept. I will tell you that my husband said he did KB for financing with our home and after a year they sold it off (to Wells Fargo). I think this is just a scheme to sell off mortgages much like other companies sell off debt.
@@yangyangnezin208 I think the point is to make the item (car or house) as cheap as possible, but then make the money on the loan interest. I guess for builders they would make money selling the loan?
@@melissas4874 yup - that’s how mortgage company makes money. Not many companies hold mortgage they originate long term - they usually bundle with up and sell them as CLO or other form of securitization. This is how they make $$ and keep cash flow. Not many companies out there can bear all the cash outflow to fund the mortgage then keep them on books. (Coming from a person working in commercial mortgage lending business for 4 years...)
I’m wondering when do you put downpayment in between the process? Do you need downpayment before they start closing or everything will be paid at the closing day? Sorry first time here
We paid a deposit to secure our lot to start the building process (After prequalification), I don't recall but I believe it was $2-5000? Then the down payment is paid at the time of closing with whatever your loan requirements are. Closing happens after home building is complete.
Your husband was out of work for a month with no income while you have applied for a mortgage and all they asked you about was an overdraft fee from 5 months ago. Not about not working for 30 days? 🤷♀️ I think another mortgage lender might have denied you.
Exactly what is happening now with us. We were transferred to another loan officer in florida. Asking us for the same info I gave the original loan officer. We instantly dropped kbhs right there and went with a outside lender. Hopefully he comes thru and help us get DPA on a conventional loan.
Man, so frustrating! Best wishes on a smooth closing! I know it's hectic right now with so many people purchasing and selling. Even more so than when I purchased last year, I can't imagine.
Thank you. This is very informative. We just signed our contract and our total home cost is $321,739. Since we exceeded 15% of our total upgrades we paid $13,269. So our new loan amount is $308,469. We are currently working with three potential lenders. They told us we could switch lenders 30-40 days prior to closing. They really are pushing for the KBHS loan. However, their pre-approval numbers didn’t make sense like you said.
Thank you so much for your review of KBHS we started out with them but we noticed they started getting sketchy as hell later in the process and honestly I couldn’t agree more it’s not with the incentive to feel with that horrid me company. In home, hardly no issues, KBHS need a lot of help
It's still good to check with their provider, and then take that approval to a lender you want to work with, within two weeks(two week grace period for credit runs). Why? Because you can be like "well the KB lender is willing to pay x,xxx amount to the closing costs and has provided an interest rate of x.xx%. Can you guys do better?" Treat it like buying a car. You take your quote, and go somewhere better to get a better deal, but not without that quote/bargaining chip.
All mortgage lenders have strict guidelines with applicants. There are some lenders that offer beneficial products but the application process is all the same. Just remember the big 3 when applying for a loan which 1. Debt to income must be low. Get rid of all credit card, auto, student and personal loan debt. This is the biggest indicator for a lender to decide if you can afford the mortgage. This is a huge important factor. 2. Have plenty of liquid assets, i recommend at least 6 months cash reserves on top of your down payment. 3. Credit score. This is what decides your interest rate. Technically you really only need a 600 and up score to get a mortgage but the higher the better.
Thanks for the tips! Unfortunately with the Covid changes last year, even with a typically "good" credit score, the bar was raised and we no longer qualified for the conventional loan we wanted. But in 6 months, we've raised our credit and are in the process of refinancing already to our desired loan.
This should be pinned…you covered all the key points.
A lot of mortgage lenders sell your mortgage. There’s nothing suspicious about that.
Wow!!! All that would make me want to say forget it. Especially after you tried to work with them, but still getting the run around. Hope that thru all that your happy with your home.
fostbobb we are very happy with our home and with the rest of the KB Home experience! It was just the loan part which I’m sure getting a loan in general is normally a pain in the butt. Lol
@@PattyTurk yes. I agree.
We can relate completely with your experience. We have found that what they say and what they do are different as to meeting deadlines and getting back to us with updates. They have not stuck with their estimate of costs on the disclosure including raising the interest rate by a little more than 1% and not protecting us with a loan interest lock as we requested from the very beginning. So what is a disclosure for if it means nothing? When we looked at the calculations that they made in relation to or DTI they were completely wrong; no idea where they even got the numbers. We felt that they were making calculations as to make us look bad so they could take advantage of us with extra fees, charges and higher interest. Note, my wife is an accountant so the numbers we gave them were very accurate and we only had one debt; a student loan payment. Like you said we thought that being part of KB would make the whole loan journey seamless, less stressful, and though delusional pleasurable.
BEWARE: RE: The Appraisal of your KB home! If you use another lender your appraisal may or may not "make value" because it will be completely objective. This is GOOD. If you use their lender your house WILL 100% appraise for at least what you paid and likely a little more BUT this is NOT good. Here's why...The lender uses ONLY appraisers that will "make value" EVERY single time...period. (I know because I worked for them for two weeks until I didn't and was "counseled" to which I promptly fired them). One of my buddies was OK with basically giving them fruadulent appraisals so he got all their work. The problem will come when you try to sell or refinance and all of a sudden you are "upside down" $20 - $40K on the value because this appraisal WAS subjective. I would avoid their lender unless you are getting at least 1 point discount on the loan.
Thank you so much for this
Everything you expressed sounds about right with many banks and some lenders that is why having a real-estate agent as a back up to over see the process is vital and a good moral real estate agent will have a preferred list of lenders to work with ... I only recommend dealing with all this hassle if you are ever offered a big sum toward closing title and survey
Thank you @Turks and Chaos for the detailed review. I was initially thinking about KB Home Loan for a new home but now big NOO! Thanks again!
I am waiting for my kb home and I am experiencing the same thing. At the moment I am homeless. No answers . It's crazy
Thank you for clearing up what we are experiencing right now!!!!
@Turks and Chaos, did you have any issues with the appraisal coming in lower than the purchase price? My fiance and I are worried about the comparable sales here in Socal and having to come up with 10-20k cash to cover the gap.
Omg! This is literally our same story in florida!!
Really!! I jus went under contract with. KBHS loan here in Tampa, Fl I’d love to hear about some of your experience.
So frustrating! I will say, I haven't had any more issues with the actual loan and paying my mortgage since the initial hiccups. And we already qualify to refinance with another company so we get to make a better decision on a lender, just 6 months later.
We have been having the worst!!!! Experience with KBHS they actually harassed my husbands employer to the point that they won’t speak to them directly anymore
This video was much needed! Like you said you can’t find ANY reviews on KBHS and I swear I can relate to so many things you’ve stated down to the loan processor being in Vegas and Im Cali. I’m definitely going with my broker. THANK YOU!THANK YOU! THANK YOU!
Glad it was helpful!
Yes Always the best to go with Realtor or broker who can represent you .
Thank you foe this video! We are just starting the loan process with them and got a crazy number for estimated closing. We already had a broker but just wanted to see what we got with them. They are sketchy!! We still want our home to be built by them but we are using our broker. Would you still recommend your home be built by them?
What was the estimated closing that kb home loans was asking? Were the closing costs high?
Forward to 10 minutes into the video to start getting some actual info about the lender.
Thanks 😂
Oh my goodness. This scares me more. We’re currently working with them now and are already having some of these issues. We’ve received 4 different disclosures already. All with different numbers. No one can explain why the numbers are different. We also have someone is Las Vegas & someone here in Arizona where we are. I hope they get it together. OMG.
I know it! Super stressful, But we got through it and were able to refinance with a different lending company within a year after closing with original loan. Don't be afraid to continue questioning them, someone has to give you information that makes sense, keep asking to speak with someone else until they can figure it out. Good luck!
So have I, been working on this since August! I have done all that they ask and still no progress!
That’s terrifying about what have gone through.
I just want to thank you!!! I am purchasing my very first home and I definitely will NOT ! Be using KB homes loan
Are you happy with your new home with KB now?
I am! We love our home and have since refinanced with a new lender
Going through the same thing with them now so unorganized and the original loan officer we had from the beginning got fired so they switched loan officers during processing once we got the new loan officer she was like we have to start the process all over again so as of today we are 90 days from expected closing and we don’t even have an approved loan so we may or may not get our house and I gotta call almost every day just to try and get some info about the application process…very stressful…I hope that it gets better but we are in a bad spot with them right now…thanks for sharing your experience
Hello Wilson. Did you later close with them ? We are going thru the same thing now.Just changed our loan officer last Friday. Can please share your experience after the new loan officer was assigned
@@alabeplenty hello 👋 no we are not expected to close until august but my loan had to be completely redone so had to go through the entire process again but this loan officer has been much better and more transparent and up front so just hoping that it ends well I will update once we close
@@wilsonrobertson7156 thank you so much for the response. Wish you all the best. Our closing is in January 2023.
When did they tell or when did you ask how much money you were supposed to bring at closing?? I don’t want them to surprise me at the time of closing :( We just finished signing the purchase agreement for a new home build and there wasnt a number next to “closing costs”. Was there supposed to be a number in the purchase agreement (they said they will be covering $5k in closing costs) or will they be adding it later? Thanks
Thanks for the information
So they strong-armed you into what they wanted? Glad I already live in a home. I'm just going to bring this up when initially talking to them and tell them if they are going to try this I don't want to waste my time with them.
As for the financing people? I work for a large company that sells across the U.S. and am the only person in my position! I support like 5 different business lines. So I understand your frustration, but that is more KB being cheap on hiring people for their financing dept.
I will tell you that my husband said he did KB for financing with our home and after a year they sold it off (to Wells Fargo). I think this is just a scheme to sell off mortgages much like other companies sell off debt.
It’s called securitization...all most ALL of lending businesses do this...
@@yangyangnezin208 I think the point is to make the item (car or house) as cheap as possible, but then make the money on the loan interest. I guess for builders they would make money selling the loan?
@@melissas4874 yup - that’s how mortgage company makes money. Not many companies hold mortgage they originate long term - they usually bundle with up and sell them as CLO or other form of securitization. This is how they make $$ and keep cash flow. Not many companies out there can bear all the cash outflow to fund the mortgage then keep them on books. (Coming from a person working in commercial mortgage lending business for 4 years...)
I’m wondering when do you put downpayment in between the process? Do you need downpayment before they start closing or everything will be paid at the closing day? Sorry first time here
We paid a deposit to secure our lot to start the building process (After prequalification), I don't recall but I believe it was $2-5000? Then the down payment is paid at the time of closing with whatever your loan requirements are. Closing happens after home building is complete.
@@PattyTurk thank you so much this helps a lot! I’ve been looking for several videos and couldn’t find some answers.
Your husband was out of work for a month with no income while you have applied for a mortgage and all they asked you about was an overdraft fee from 5 months ago. Not about not working for 30 days? 🤷♀️ I think another mortgage lender might have denied you.
Always better to use your Lender if you want to know more call me .l will connect you to a gd lender.
Well going to look elsewhere 😬
Exactly what is happening now with us. We were transferred to another loan officer in florida. Asking us for the same info I gave the original loan officer. We instantly dropped kbhs right there and went with a outside lender. Hopefully he comes thru and help us get DPA on a conventional loan.
Man, so frustrating! Best wishes on a smooth closing! I know it's hectic right now with so many people purchasing and selling. Even more so than when I purchased last year, I can't imagine.
@@PattyTurk we trying not to stress ourselves. So far, our lender is upfront with us. We will in the next 3 weeks what options we have.
Jesus Christ!!!!!!
Amen!
Your bad experience started the day you walked into the KB model home...