Home Buying in Maryland>Question Details

Bkart, Home Buyer in Frederick, MD

Is NVR mortgage taking back some closing help through1% origination fee?

Asked by Bkart, Frederick, MD Sun May 3, 2009

I am looking to purchase a new Ryan townhome with the incentives being contingent on using NVR financing. They quote a 1% origination fee and rate of 5% for 30year FHA, they also said that without the origination fee the rate is 5.5%. I also have a GFE from Wells Fargo with no origination and a similar rate (possibly a little lower). All of the other fees are reasonably similar. Am I to assume that NVR is basically taking back some of their incentive at closing and relying on most people not knowing, how is Wells Fargo making money off the loan with no origination fee?

Should I be asking NVR to eliminate this fee?

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Answers

2
You should not pay an origination fee unless you have really poor credit scores. But in this market (2012) you won't get a loan with poor credit scores.

Yes, the builder's lender will charge an origination fee to offset closing cost help. It's all a numbers game they play. This is an important reason why you should choose to have an agent by your side and especially one who specializes in New Homes. I used to sell for the builders so I know much more than the typical agent. Plus I grew up in the custom homebuilding business so I know a lot about construction, how you can maximize your investment dollars for resale down the road and much more!

Cathy Chapman, Broker Owner Agent
Signature Home Sales, LLC
http://www.SignatureHomeSales.com
http://www.CathyChapman.com
http://www.FrederickHomesForYou.com
301-514-6839 Cell
0 votes Thank Flag Link Fri Oct 26, 2012
Yes they are backing out and yes you should ask them to eliminate the fee. It's all a numbers game designed to fonfuse you into helping them get over!!!

We were also hoodwinked into using NVR mortgage services so we could receive the full benefit of free upgrades being offered; it was the worst experience we've ever had with real estate! When the VA changed their financing cap from $417K to $600K something, NVR simply changed their credit score requirements so they didn't have to refund us our down payment. We were told we just missed it by a few points! The LO was totally non responsive, so much so that when the rates dropped we were not able to lock our rate because she just didn't respond! We e-mailed her supervisor and got no response, then e-mailed her supervisor's supervisor and still received no response. Finally my husband called the district manager after we were told that the LO and all her supervisors were in a meeting and could not be disturbed. Funny, they answered the phone when he called. The loan processor repeatedly asked us for documents we had already sent. The LO failed to request my husband's disability certificate so we could be exempt from the Loan Origination fee. Up until the day before settlement we were e-mailing the LO and processor to find out how much we needed to bring to settlement and what other documents they would need. Then when we went to settlement, the representative was upset because we actually wanted to read what we were signing! She left us in a room and went to another settlement! We received nothing but attitude when we asked for clarification on documents. I will never use NVR Mortgage, Settlement Services or any other service they say is separate, but they are all one big company with Ryan homes, ever again!
0 votes Thank Flag Link Fri Sep 4, 2009
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