Being Steered By Home Builder To Preferred Mortgage Lenders
This Article on Being Steered By Home Builder To Preferred Mortgage Lenders. This is a topic I have very recent first-hand experience with. As you have read in my last few blogs, I purchased a new home from Ryland Homes. I was definitely being steered by the home builder to go to a “preferred” mortgage lender that they worked with. I already had a lender, The builder was so aggressive in referring me to their builder’s preferred lender. Let’s get into the details, shall we? In this article, we will discuss and cover Being Steered By Home Builder To Preferred Mortgage Lenders.
My Experience Being Steered By Home Builder To Preferred Lenders By Ryland Homes
It was July/August of 2014 and we were in the market for a new home. So I did what anyone else would before committing to purchasing a new home. That is I went to get a pre-approval just to know what my range on home would be. I called up my good friend a loan officer that will probably turn in the individual through these homes with Ryland homes that would be ready for delivery by the first week of November. Ok, great, this is a time frame we can work with, so let’s proceed.
How Being Steered By Home Builder To Preferred Lender Started
Upon sitting down and about to sign the paperwork with the Sales Rep over at Ryland Homes (Jamie). We were told that the upgrades/discounts that were priced into our home would not be given if we didn’t try to get approved through their preferred mortgage What? How can this be? We agreed to a price and I have a pre-approval letter that will give me the comfort of knowing this transaction will be done and closed on time I was met with the response “well we can proceed with your route but the builder option discounts will go away and we will have to increase. your price accordingly.”
Why Home Builders Steer You To Their Lenders?
Wow, this was unbelievable as now I felt like I was stuck between a rock and a hard place What was I supposed to do now? I knew that mortgage brokers for bad credit can definitely call or email us. My cell phone number is 262-716-7151 hours of work to get me this far and to start over just didn’t seem fair to get us out.
The builder wants to avoid wasting significant dollars on someone who leaves because their loan doesn’t come through. Under the arrangement between the builder and the lender, a loan to a buyer that can only close at a loss will nonetheless be made, since the profit margin on the house will more than cover the loss.
FHA Back To Work Mortgage
Now when I talk about horrible customer service, Ryland Builders takes the cake. I was very up-front with Ryland Builders that my case was a very tough case and that I already had Gustan Cho pre-approve me and I was ready to roll with him and Mortgage Lenders For Bad Credit, Inc. Since I had been through this process before, I laid out what they were I supplied them with over 30+ documents I had supplied to Gustan Cho, Well after the constant emails asking what was going on, I was always met with “underwriting is working on it.”
Is Steering Mortgage Loans By Lenders Illegal?
There is no way that underwriting needed 6 weeks to get my file approved. As the time kept ticking and my close date got closer and closer, I still hadn’t received any response from the preferred builder’s lender. I began to go after Ryland since, after all, this was their “preferred lender.”
The Federal Housing Act prohibits real estate agents from participating in steering. Agents are not allowed to “steer” buyers away from neighborhoods based on the following: Race. The same with being steered by home builder. No, you don’t have to use a builder’s preferred lender. While builders can require that you get preapproved from their preferred lender, it’s illegal for them to require you to close on the house with their lender.
Finally, after 2 more weeks of emailing and calling the preferred lender and Ryland Homes, I finally got a 2 sentence email from the preferred lender and it was: “Sorry, but we will not be able to get you approved with us for a mortgage. Please seek out funding elsewhere”
WHAT A WASTE OF TIME!!!
Being Steered By Home Builder And Starting Mortgage Process Over
After about 2-3 weeks of getting nowhere with Ryland Homes’ preferred lender, I knew in my gut there wasn’t a chance they were going to get me approved. Being Steered By Home Builder to their preferred lenders was really stressing me out. The team at Mortgage Lenders For Bad Credit, Inc. already warned me about how many of their borrowers got denied after Being Steered By Home Builder to their preferred lenders. I was basically telling their people the ins and outs of the Back to Work program, what they would need to show and what Letters of Explanation (LOX) they would need. If anything, they should have paid me for the class and education that I gave them.
What Legal Actions Can I Take For Being Steered By Home Builder
After I got the news and knowing I had 5 weeks until my closing, I gave Gustan Cho NMLS 873293 of Mortgage Lenders For Bad Credit, Inc. that he was right and that I was back. Now since so much work was done for my original pre-approval, I just needed to update some paycheck stubs, bank statements, etc. and the file was moving along nicely,
As per the Consumer Protection Act, 1986, file a case in the Consumer Court under the ‘deficiency of service; clause. Claim compensation for the delay or undue cancellation. Also, claim both a refund on interest on the amount paid.
Gustan Cho assured me that we would meet my November close date and not to stress out. Just as he had promised, we got the clear to close (CTC). We closed on time without any further hiccups. Gustan Cho IS the branch manager of Mortgage Lenders For Bad Credit, Inc. which has helped with resoultion.ad come through for me, and for that, I am forever grateful.
Is Being Steered By Home Builder Legal?
This brings me to an even bigger issue with all of this and that is, how can these practices be legal? Upon studying to become a licensed mortgage loan officer, it is pretty straightforward forward as depicted in RESPA that steering and kickbacks are illegal. ]I don’t see how these new home builders can all try to steer their business to “preferred” lenders and everyone knows there is a kickback going to the builders.
Can Home Builders Insist You Use Their Mortgage Broker?
This is an all too common practice that I believe gives the industry a bad reputation. If I did not know Gustan Cho NMLS 873293 of Mortgage Lenders For Bad Credit, Inc. I would have been left without funding or a home to live in. These deceptive practices and holding options and discounts hostage is downright awful.
Libra Financial Planning’s mortgage consultant Sebastian Riemann adds: “Insisting buyers get qualified by the developer’s broker isn’t illegal as such, but if they are then pressurised into using this service this becomes a conditional sale, which is against the rules.”
Having dealt with this first-hand, this is yet another reason why I am so interested in this industry and looking forward to being a positive influence on everyone I work with. There is no room for these illegal practices to be allowed any longer and the builders need to start being held responsible for their actions.
What Is Preferred Lending?
We share all the common interests in our business goals and how we share the same goals in helping others. Our first-hand experience in being a borrower and dealing with various lenders has made his decision that the mortgage industry needs people like himself.
Using a preferred lender can save you money, too. Not only do they offer a full range of financing, competitive rates and expert mortgage counselling but may often extend special incentives to buyer who secure their loan with one of the preferred lenders.
Best Mortgage Lenders For Bad Credit For New Construction Homes
We have helped countless homeowners who first came to us with credit scores in the low 500s or sometimes below 500 FICO credit scores. We tell our borrowers that our philosophy is not if you can get a home loan, but when you will get a home loan. We assist and advise our borrowers with credit repair and keep in touch with all of our borrowers who are in the process of re-establishing their credit to qualify for a home loan with us. If you have any questions concerning qualifying for a home loan, please do not hesitate to contact us at Mortgage Lenders For Bad Credit, Inc. or text us for a faster response. Or email us at gcho@gustancho.com.
