Real Estate Investor · Summerville, SC · Member since 2014 · 62 posts · 2 votes
hello guys, I am in the process of buying 5 homes one will be my home & the other 4 will be for rentals. my question is lennar is offering 2% credit towards my closing costs if I use their lender. am I really getting a good deal? what is the real story behind this? etc etc. thank you in advance. btw I have 25% down on each & good credit & close in 06/2015 . I have other brokers who are not the " the preferred lender" who are wanting my business.
Real Estate Investor · Summerville, SC · Member since 2014 · 62 posts · 2 votes
11y
Thanks Joan I'm in finance myself and it looks like the shell game though raise the rate to compensate for the fees or the lower the rate with higher fees. I'm just wondering if there's really truly any advantage with going with the builders preferred mortgage lender? ????
Are you a member of a Credit Union? They sometimes have better rates for their members on Mortgages. Since you are putting over 10% down on each property, they should be willing to work with you, even though 4 of the houses are Non Owner Occupy.
Real Estate Investor · Summerville, SC · Member since 2014 · 62 posts · 2 votes
11y
Thanks Joan I'm in finance myself and it looks like the shell game though raise the rate to compensate for the fees or the lower the rate with higher fees. I'm just wondering if there's really truly any advantage with going with the builders preferred mortgage lender? ????
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
Read everything, including other documents referred to. Builders give all kinds of credits and free upgrade packages, to keep their initial prices artificially high, for future sales comp.s. here they're offering a $17k credit, but you're paying $8k of the Sellers closing costs and fees.
Real Estate Investor · Summerville, SC · Member since 2014 · 62 posts · 2 votes
11y
Why would any builder provide 2% closing cost to their customers by using a preferred lender what's the catch?
Any other ideas?
Now Wayne that makes sense they keep their prices high they use a credit below the line to entice people and then they try to make it up on the reserve on the by rate of the mortgage versus the sell rate
By the way I'm moving from Palm Beach Gardens to South Carolina