we signed a contract to build a new home, thru a home contractor. We went thru their mortgage company to receive the discounts and warantees, etc. They gave me a price over the phone that we could afford. They sent their opinion letter to ok the building and go on from there. We went to the design center already, and THEN recieved the good faith estimate which is much more than she quoted us in the first place. I told her our debts and that we wanted a no down, no closing cost loan. but in the good faith estimate its about 11,000 for closing costs (we don't have and cannot get) and 200+ a month over what she told us on the phone. What do we do? We cannot afford this home now, and they've already sent the plans to the city... Can we get out of this? Can they sue us if we do?
2006-10-09 08:17:58 · 4 answers · asked by zadea 2 in Business & Finance ➔ Renting & Real Estate
also, we were 'pre-qualified' for a home of 190,000 thru their mortgage company. We got pre-qualified thru our bank (under my dad's direction, he thinking the other loan was way too much) and they'll only qualify us for 125,000.
2006-10-09 08:20:39 · update #1
In Response to Nevada Pokerqueen:
We have not signed any mortgage papers. The only papers signed were with the building contractor.
2006-10-09 08:23:48 · update #2
When you do 100% financing, this is of the purchase price only. You still have fees which need to be paid to third parties such as the appriasal, title, escrow, survey (if needed), recording, lenders fees, tax stamps (depends on state), prorated taxes etc...
Are you doing an impound account where your taxes and insurance are added to the loan? If so then there needs to be some funds entered into the account at the beginning and depending on the time of year in your specific tax cycle you may be looking at 7-8 months of property taxes added upfront.
I do alot of loans for people who buy from builders and often times the programs available via the builders lender are limited and the cost more than off sets the 'credits' issued by the builder for using their company.
If you would like me to look your loan over please drop me a line.
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
2006-10-09 08:27:44 · answer #1 · answered by Mudisfun 3 · 0⤊ 0⤋
You're under contract from the builder which would make you liable. Is this a construction loan or from a builder that builds and develops communities? Sometimes if you are dealing with a builder that does develop their own communities you can get them to give you a seller's assist on the closing costs. There are going to be closing costs associated with any real estate deal. There are 3rd party charges such as the appraiser, title company, real estate taxes, county, and state taxes, the lender and the mortgage broker will have fees too. Why does everyone think that they can get things for free?
You can be sued for breach of a contract with the builder if they incurred costs. You might even lose your security deposit. What you should do is to go back to the mortgage broker and tell him the loan he is giving you is not what he promised you as far as payment is concerned. If you don't like what he says then go to another broker you have that right to do that. Can you get a gift from your dad to help with the closing costs? Even if you tell your dad that you will pay him back. Do you know what your credit score is?
A no closing cost loan are only associated with refinancing and home equity loans.
2006-10-09 17:23:58 · answer #2 · answered by steve s 3 · 0⤊ 0⤋
Dont' wait see a Real Estate Attorney at once. They can give you a free consultation and let you know if you have recourse. Was all papers signed by you or just verbal? Signed contracts should have included all money owed. If you signed it and then they raised the costs you may have recourse.
2006-10-09 15:21:37 · answer #3 · answered by Nevada Pokerqueen 6 · 0⤊ 0⤋
Why don't you get a lower bid from another contracter?I'll give you one right now.
2006-10-09 15:19:36 · answer #4 · answered by aries4272 4 · 0⤊ 0⤋