I'm a little nervous going into this because thus far, our NVR processor has been sweet but kinda distant. I have sent emails that go days without being returned, tried to leave a message and her mailbox is full. She said we were clear to build and approved for financing but I have not received any such paper confirming this.
Also, we had a goal price of what we wanted to spend on the house. In South Carolina the prices are really inexpensive but we still chose the smallest house so we could splurge a bit and make the inside super nice, which we have never had. It's crazy how fast things add up and before we knew it, we were $5,000 over our budget. It is not a super big deal but that was before our flooring appointment which then added another $3500. Sitting at $8,500 over budget, I am curious as to where our mortgage payment will be, and what kind of closing costs we are looking at.
We are doing a VA loan so it is zero down but we had to pay $6,100 just to start the house with Ryan homes (3.5% down) and were promised through and through that if we do 100% financing, we will get all that money back. In looking at the preliminary estimate from NVR it showed a VA funding fee which does not apply to us and a few other things that brought our money back at closing to only $2500 and that included the $4000 closing cost credit. So basically our closing costs were $7500??? Yeah right. I am going to be upset if this is the truth and we better get most if not ALL of our money back and then some. Especially since the SR promised me we would get it back.
I emailed the NVR loan officer this morning requesting a new prelim doc that I could review BEFORE I go into my pre-construction meeting and sign off on all our upgrades. If we are still in our target mortgage payment range, we may go ahead and upgrade to level C carpet upstairs with the level C memory foam pad ($2000 total). She said every $1000 adds $5 a month, so it would be an extra $10 a month. However, we are already about $50 over from where we wanted to be. I could care less about the total purchase price amount but this move down here was a lateral pay shift and I really want our bills to remain the same as what they were up in Pennsylvania so that not much changes in the way of our budget.
Anyways.
Here's to hoping we can nail everything down and quit worrying over all this. I'm excited to meet the PM and get a start date.
Hi Kellie! I found your blog from your comment on my RH blog. I really like all of your selections you've made. We are also doing a VA loan but its going to take a while on the funding fee thing and we may have to pay it. If you add a follow button to your blog, it will be easier to have other RH bloggers follow along in your build.
ReplyDeleteWe're going VA (but aren't exempt from the funding fee). Either way, we're financing it in our mortgage and our GFE has it in there then deducts it from the settlement costs. There's no way you'd get ALL your money back unless the $4k credit was enough to cover all the prepaids and closing costs. These would include whats required to put into escrow (unless you're paying for taxes/fees directly), what they charge you for the survey fee, title fee, lender and purchaser title insurance, and the loan origination fee (almost as much as a funding fee). When we went to NVR, the GFE listed exactly what we woudl be charged and priced this all out. It did not include any possible credits that may cover an origination fee (1 point in our area) due to good credit standing. If we count that possible credit and get a good rate that would cost less than a point, we'd save that 1% and not have much due at signing considering the deposits we paid to initiate building.
ReplyDeleteI think the issue was they didn't have the money we put down factored into the costs which is why it was showing we were going to have to come up with so much. It seems to be all worked out now. On top of the move and everything else, it was really scary to put all that money down, pay out of pocket for a move, living in a temporary situation, and then not get our money back but even have to pay $2500 more. But it seems to be ok now.
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