Home Builder Mortgage Company Part 2
So you are 60-days from closing on your new home. The interest rate is bouncing around weekly, if not daily. Now it is time for you to turn up the heat on the builder’s lender. Here are some things to understand. 1. Builder lenders do a lot of business. They prefer to communicate by email or phone because it is efficient. 2. The typical loan officer for a builder is not a sales shark. The business is guaranteed to them so they have less of a “sales mentality”. A lot of times, they are on salary so they should give you fairly honest advice on the locking of an interest rate. 3. Meeting the non-sales agent loan officer in person 30-days before

Home Builder Mortgage Company Part 1
When you are shopping for a new home, you need to be ready to deal with one of the builder’s hidden profit centers. Every major builder has an in-house lender or preferred mortgage company. The new home builders will tie any incentives to using their mortgage company. Most Builder Mortgage Companies are not evil. The Truth-in-Lending laws keep them honest about publishing interest rates and terms of the loan. You still need to be mindful of closing costs and interest rates. Here are a few tips: 1. Get pre-approved by a large lender. By having a pre-approval letter from Bank of America when you first meet with the builder, you are sending a message. You showing that yo

Why Builders Discount Inventory Spec Homes
Builder inventory is great place to get a deal on a new home. The builders refer to them as “specs” or homes built to certain specifications. Those specifications are usually from the previous buyer on the home that did not close for any number of reasons. Now the builder is stuck with a home and they did not get to pick out all of their precious neutral colors and best-selling options.

The Home Builder Incentives Game
Last week we wrote about the timing of incentives. If you missed the article, it is Chapter 3 of our book called 21 Secrets of New Homes Best Buys. You can get a free copy at http://BuilderCoupon.com Home builders lover to play the Incentives Game. In the peak of the last building boom, Centex Homes was giving away a free year of house cleaning, Ryland was giving away flat panel televisions, and there was even a builder in California giving away a mini-cooper with a home purchase. Why would a builder do this? It is just another way to channel the buyer’s emotions. The more emotional ties you have to the house purchase, the less you will negotiate on the price. When I

Timing Strategy for Builder Home Specials
When you buy a new home from a builder, there are optimal times to sign paperwork. Here are a few simple truths from my experience in the industry. Buy a a new home based on Wall Street. 1. Big builders report to Wall Street and their stock investors. 2. Big Builders do crazy things right at the end of a reporting cycle. 3. By timing your purchase around these Wall Street reporting