Mortgage question?

Discussion in 'Credit Talk' started by roni, Mar 12, 2001.

  1. roni

    roni Well-Known Member

    Has anyone bought a home at a development community and used their mortgage company.

    I found a lovely townhome that I wish to purchase and they offer many incentives to use their mortgage company.

    The mortgage is low and would be below FHA guidelines. Has anyone done this or is it very difficult to get a loan this way? They claim to offer great rates, but what kind of credit do this people usually want...I know I should just ask them, but I am wondering ahead of time.


    GEORGE Well-Known Member

    Sometimes they can cut the "GOING" rate by a bit (MAYBE EVEN 1.00% OR MORE) because they have a "captive" audience.

    I personally have not done it...
  3. roni

    roni Well-Known Member

    that is what they claim. I was just wondering if they can be as easy or harder than fha. FHA seemed very easy. The info I am reading now claims that they offer an "easy-to-follow homebuyer guide" I hope it is easy since they claim they can cut the rate a little.


    GEORGE Well-Known Member

    Go visit it and check it out, and ask questions. If people are living there now, walk the neighborhood "looking" for people (on SATURDAY or SUNDAY) who live there and ask them questions about buying...if they were happy, if they saved money, etc.
  5. judyputy

    judyputy Well-Known Member


    We purchased our first condo that way. We walked into the development and they handled everything. I was easy and the builder was offereing all sorts of things in the "package" One thing he did was pay 2 points, so we got a better= lower rate with 2 points "paid" by him. Also got a full appliance package with the condo included. Check out the rates and the mortgage company, but most of the time they are fine. They are easier sometimes too, because they have an extra insentive to get you into the home. I think they had normal credit expectations, we passed and our credit was not bad , and we didn't make alot of money either

  6. MikeG

    MikeG Well-Known Member

    I purchased a home in December of last year. Builders want you to use these lenders because they have arrangements with them. It is an additional way for them to make money. We all know the real money for a house is made on the loan not the sale price of the house.

    Many times, the same incentive they give if you use their lender, they'll still give if you do not. By this I mean money towards closing costs. I had established a good relaionship with a lender, but my development told me that they wanted me to use their lender to get the perks. After I moved in, I talked to a neighbor who told she was able to use that exact lender I wanted to use and still received the perks.

    My point, treat them like your credit cards roni. Ask to speak to the retention department and get what you want. :)

    Mike G.
  7. roni

    roni Well-Known Member

    Thank you all!

    Thanks for all your advise. I will do just as you say. "Clueless" is how I feel about all this but I feel more confident now. I will let you know how it goes.

  8. ShyGuy

    ShyGuy Well-Known Member

    Roni, moving to Jersey?

    if so, welcome to the neighborhood
  9. roni

    roni Well-Known Member

    Re: Roni, moving to Jersey?

    Yes. South Jersey. I found homes alot cheaper there. I will let you know what my search brings. I found a nice cute townhome w/o garage for $140K-149K w/o options yet. And I found a Beautiful townhome for $180-$198 depending on the options. I want the more expensive( it is really all that)but I am trying to think reasonably. It will be just me footing the mortgage payments. My income is low $100K. I just dont know. I do the mortgage calculators and I can afford it....I have alot to think about....Thanks though Neighbor.

    BTW: I lived in North Jersey for 5 years though...My mommy lives there.

  10. Nave

    Nave Well-Known Member

    Re: Roni, moving to Jersey?

    With mortgage calculators, figuring points and down payments etc just remember not to leave yourself strapped for cash. Meaning even though it helps to put a larger downpayment and paying points (basically interest) to lower rates, and changing rates to lower monthly payments etc...When all is said and done you do not want to leave yourself without some padding - by that I mean available cash.

    There are always unforeseen items the first 2 or 3 years that will need cash and they tend to be alot more money than anyone admits to and far more than I ever spent while renting :)

    This is what happened to me, essentially I used every bit of free cash I had on the down payment (20+%) which made my monthly's affordable even in a 15 year plan, and thought I could easily make the monthly payments so I would be ok...however unforeseen expensive items (basic homeowner stuff like buying lawnmowers leafblowers, roof/sidewalk/waterheater/furnace repairs, washer/dryer...I could go on and on) kept "stealing" away my monthly payment cash and without any real "free" cash to dip into it resulted in continually falling behind on my mortgage payments.

    Just some advice from someone whose house CAUSED his credit problems. I now endeavor to remain a renter however, I am envious of your new journey into homeownership...I wish you more success than I had. Good luck with everything!


    PS My relatives are all over North J...Livingston, West Orange, etc... I feel a kinship :)
  11. Newcomer

    Newcomer Well-Known Member

    Re: Roni, moving to Jersey?


    The best advice ever given to me was..whenever a builder or lender asked how much you were willing to put down, respond with "What's the least amount needed in order to purchase the home". If you tell someone you have 10 or 20 thousand dollars, they're going to try and eat it up in fees, closing costs, and other crap. My friend save over 25000 towards her house. Only 16 of that went towards the purchase of the home. The rest went into escrow taxes and such that the lender did not even bother trying to get the seller to contribute. I agree with Dave, do NOT strap yourself getting into a home. I bought a new one, so I'm covered for a while on repairs, but with a new home, you need all kinds of things, like miniblinds, curtains, security system, garage door opener. Granted, these things aren't emergencies, but you don't want to go into a house empty handed. You're a smart woman, you'll figure this stuff out:)
  12. GEORGE

    GEORGE Well-Known Member

    Re: Roni, moving to Jersey?

    I'M GLAD I BOUGHT MY HOUSE, I saved about $300/month...from renting.

  13. Momof3

    Momof3 Well-Known Member

    Re: Roni, moving to Jersey?

    Yes Dave and newcomer make excellent points. As I am sure you are well aware those front/back ratios only account for MIN payments on cards/mortgage/car loans. They don't however take into account utilities/insurance/food, clothing, you get the picture, Just remember to buy what you can truly afford, most people don't own their dreamhouse the first time around. That was the main reason that we are waiting til June, I want to save some money for emergency funds and pay down some debt. And if I am still not comfortable come June than I will wait til Sept and see where we stand. I have waited this long I can wait a little longer:)

  14. roni

    roni Well-Known Member

    I get the point..

    So what you guys are saying is that I should go with the less expensive home and have more leeway in my available cash. That is what I think, but I had outside influences (friends) who were pushing me towards the Mega Townhome for $190K.

    Well they are not paying for it and I told them that. How much should I put down on a home new construction like this and in what time frame?

    Thanks again for everyone's input. I am truly clueless about this whole ordeal.

  15. Nave

    Nave Well-Known Member

    Re: I get the point..

    Not necessarily "less expensive" but be aware of the normal everyday expenses that will come and don't leave yourself short of "available" cash to take care of unforeseen items. Those monthly's add up.

    All in all, owning a home I am sure can be a great experience if entered into with eyes wide open, I was squinting and I won't do that again. -dg
  16. mother2

    mother2 Well-Known Member

    Follow your natural instinct

    I've heard real horror stories about people living off of rice and beans...literally...because they went into homeownership with their eyes CLOSED! I agree with Mom and the others. Don't listen to your "peers" because when that mortgage is's due. You don't want all of your hard work with rebuilding credit go down the drain. Keep up with yourself...not with the Jones'. :eek:)
    Prepare yourself for all of those things you think might NOT happen....that's when it will. Listen to the "regular" experts here on this board and gather all the info you can from other homeowners. No one stays in their 1st home for 15 yrs. The first home is usually the "starter home", that way the 2nd one is the one of their dreams! And you would have more homebuying experience the 2nd time around.

    I hope to be ready by next year! I thought by the end of summer but I think that won't happen, unless I hit the lottery or fantasy 5. :eek:)

    And my opinion: If you're buying a house jointly...make sure YOU alone can afford the payments w/out the extra income.

    Good Luck and "YOU GO GIRL!"
  17. GEORGE

    GEORGE Well-Known Member

    Re: Follow your natural instin

    OH NO...I better sell my home QUICK...08/2001 will be 12 years.

  18. mother2

    mother2 Well-Known Member

    Maybe I should have said

    Not everyone. Sorry.

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