I'm going to give you an answer you might not expect. If you have a loan approval, if you are within 30 days of close, and if your builder is going to make your life difficult if you attempt to switch, I'm going to advise you to bite the bullet, stay the course and get it done.
It may not be fun, and it may involve some cost, but you can always refinance later, and once you're in the house. But when I have a buyer in contract, the first priority is always to close. If you don't do that, your terms don't matter, now or in the future.
Your scenario is not uncommon and I wish I could tell every new contstruction buyer about your very experience in advance. But the playing field is set so that the builder's lender is often the path of least resistance. If the terms are not the best, that's the risk you ultimately take.
Let me know if I can help in any manner.
Taking this one step further, let's suppose you could elect to use another lender....would you be able to make these secondary arrangements and meet your closing deadline. Since you would be starting the process "anew" it's highly doubtful that your new lender would be able to complete their process in less than 30 days.
Changing lenders may not be the solution to your problems but n adjustment that only adds to your dilemma.
Check around and see what you get. have all your documents ready so it can go real smooth if you decide to change. If you are changing due to rates being higher when you signed the contract you may find equivalent rates at the other lenders.
Based on your rendition of the terms it sounds like you are stuck with what you chose. My question is why did you accept the terms to begin with.
Since I'm not an attorney and not privy to the terms of the contract I would suggest you get legal advice if you really want to change lender, but I would also evaluate the cost of the atty vs the terms before pulling the trigger on that.
The only thing the builder won't do, is give you any incentives they may have been offering if you choose to use a different lender. Many home builders offer a certain amount of closing costs paid to you Or a guaranteed interest rate or certain Options, if you use their lender.
However, if they're not offering you any incentives at all to use their lender, then Yes, you could choose another lender.
Please call or text my trusted lender, Ryan Gale with JMJ Financial at 714-401-7282 or email at RGale@JMJFinancial.com he is a mortgage broker, however they also fund loans in house & are able to be a bit more creative & competitive as they work with borrowers on a case by case basis & could very well, offer you better terms than the builders lender.
He's working the holiday time, just as I am, if you can shoot me an email directly or give me a call in the morning with your name/#, I can give him a heads up to contact you tomorrow.
If the home is ready, he could close the loan in under 30 days too. **I do not look back on this same Trulia posting for answers or replies after mine.
Emily S. Knell
Realtor Since--- 1996
Realty ONE Group
You may use any Lender you chose as long as they close within your Escrow Timelines. We can close your Purchase Money Loan in 21 days or less. Please give me a call at your earliest convenience to discuss your Finance Request.
Loan Originator / Jr. Partner
5506 Sunol Blvd. Suite 200
Pleasanton, CA. 94566
Office: (925) 461-0500
Cell: (925) 872-0695