I sign a contract on a new home?

Question

The builders wanted 2000 down, I didnt put any money down yet. Can i cancle with the builders and go with another mortgsage company?

Answer 1

Sure.. however some builders will offer special incentives if you use their mortgage companies. If you don't have a real estate agent I highly suggest you find one to assist you in this process.

Unless you've purchased a home before or have someone with experience doing so... you really need to have a real estate agent. There are SO many things you can get screwed on and an independent agent (not associated with the builder) will be your best defence againsted a bad business deal.

Good luck!

Answer 2

You have a legal right to obtain financing from the lender of your choice but the amount you put down as earnest money does not go to the lender, it will be a credit to your closing costs. You put down earnest money so that the builder will reserve that home for you and not sell it to anyone else while you are pursuing financing.

Some builders have working relationships with specific lenders and may require a larger earnest money deposit if you choose another lender as they may not have experience with your chosen lender and want a larger deposit to feel more comfortable with your sincerity as a buyer.

You have every right to pursue your own financing and I encourage you to shop lenders to find the one with whom you are most comfortable.

Feel free to email me with any further questions you may have regarding your financing.

Answer 3

If you signed a contract, then you're obligated by the terms of that contract. The answer is in the document you signed.

Answer 4

you should seek the advice of a real estate attorney or one of those not for profit home development/housing programs.