Well after reading another blog that discussed the high closing costs that NVR charged, I decided to call my bank USAA to see what they could offer.
Turns out we will actually be less out of pocket to use our own bank, and that even takes the $4000 into consideration that NVR gives.
For example, NVR's origination fee is almost $1800 where as my bank is only $600. They are charging me $65 for electronic storage...what the heck? My bank laughed about that...they don't have any charges like that.
Our payment will be less, we will get a credit to cover most all of our closing costs and still get our good faith money back that we had to put down in order for them to start the house. We would have had to take a bigger credit with NVR to get it back.
Just something to think about. They aren't really giving away free money...they are using that as a way to make you think you need to go with them but are charging up the wazoo in the closing costs to cover it.
And I'm not thrilled that after closing we would be sold off to Wells Fargo. I really wanted everything bank related at the same bank I use for everything else. So I think this is going to be a good fit.
With rates rising, it may be worth shopping around elsewhere. Food for thought.
In other news:
Our roof trusses were delivered today. I won't be able to make it over today since I'm leaving tomorrow go to out of town until Sunday. Hoping to see some framing up when I get back!
We are in the same boat! :-)
ReplyDeleteWe are using an outside lender! :) And still getting our credit.
ReplyDeleteHow did you still get your credit? I'm hoping to do the same....
DeleteIt sounds like you are getting a really great deal. Congratulations! I hope it all works out!
ReplyDeleteWe use USAA for EVERYTHING because their prices beat almost everyone and customer service is great. We ended up going with NVR only because of the money we saved with incentives for using NVR in the long run, we ended up saving but so far, we've been pretty unhappy with the whole NVR experience. :( The building process on our new home just began. I started following your blog for advice and inspiration. Here's the link to mine:
ReplyDeletehttp://ourravennabyryanhomes.blogspot.com/
Excellent thoughts! That sounds like it is a better deal for you and definitely something buyers need to consider when choosing their lender. NVRM knows they are usually a ripoff (they make you sign a notice stating they may not be the best deal) and they feel they "have" you because most of the time the Ryan incentives are tied to using NVRM. They are not only charging us a 1% origination fee, but a $500 underwriting and $500 processing fee - OUTRAGEOUS!!!
ReplyDeleteSame here...we are using a different lender :)
ReplyDeleteWe are in the same situation! We figured out our payments going with another lender (who had a lower interest rate) with a higher loan amount due to not getting the incentives and our payments would be $40 less per month!! Plus our closing costs would be less! We didn't really get a lot of incentives so I think that is why it works out that way for us. You gotta do what makes sense for you, but it sounds like USAA would be a great deal!!
ReplyDeleteWe just had our preconstruction meeting today. So, we aren't locked in yet... thinking $5000 incentive for using NVR, if you got to keep your credit, how did that happen??
ReplyDeleteWe haven't fully made the decision yet but we are going to submit the GFE from NVR over to our bank to see if they can beat it. They may not give the $4,000 that NVR does, but they can beat them at the bottom line if that makes sense. NVR's fees are crazy so we would still have to bring more to the table than we would with our bank, and that includes their credit. At this point I'm pretty sure we won't use them because I had originally really wanted to use my bank anyways.
Deletethat makes sense! We'll see what our bank says.. I'm guessing I'll hear from them before I hear from NVR about changing our GFE.. haven't seen any positive comments about communication with NVR!
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