Home Buying in 21401>Question Details

Thesuperzman, Home Seller in 20901

Is there a way to keep NVHomes incentives tied to NVR Mortgage even when changing mortgage lender?

Asked by Thesuperzman, 20901 Sun Apr 5, 2009


At this point, after negotiations have been complete and we are fully non-contingent, is there anyway to 'manipulate' the situation to change lenders and keep the incentives?


Help the community by answering this question:


You should have shopped lenders before committing to NVR mortgage and then negotiated your incentives. The fact that you are non-contingent is a major plus for builders. You could have probably asked for the same incentives they are offering with the use of NVR mortgage.
0 votes Thank Flag Link Sun Feb 14, 2010

How did it work out for you?? If I were you I would be very cautious about Diane's enthusiasim for using NVR Mortgage. That's the song and dance we received to about how many benefits we would receive using NVR as opposed to another company.

Ryan went on and on about their expertise helpin military members and convinced us to 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
The mortgage lender that told you that the builders generally don't care, hasn't worked with NVR. As a previous manager for NVR, my division rarely, if ever, allowed a buyer to use an outside lender and keep the incentive. Perhaps the lender just wants your business.
I would handle it this way. A month before settlement ask your outside lender and NVRM to do a GFE, compare the two and ask NVR to match it. You will go to them armed with the ammunition to help you negotiate at the right time.
0 votes Thank Flag Link Tue Apr 14, 2009
I'm fine with the contract I've signed. Provided that I qualify for the best rate NVR offers (even if the rate is higher) - that's what they preapproved me for. But have heard horror stories of bait and switch on rates. I recognize that incentive is incorporated into the rate. In fact, if you do the PV calculation over 30 years - it comes about nearly to the penny of the incentives.

The seed was planted for changing lenders by another lender working with another builder. He claimed that the builder typically doesn't put up a fight if you want to change from the builder's lender. I tend to think that is BS - but wanted someone who works closely with the builders to steer me straight.

My intelligence is not insulted - but I was frustrated that my original question was ignored. Thanks for your time.
0 votes Thank Flag Link Tue Apr 14, 2009
Hi again,
Sorry so obvious. It's difficult to ascertain from a few words in a question how familiar people are with the financial side of real estate. I certainly didn't mean to insult your intelligence.
The legal answer is no.
The day to day answer would be to talk to the sales rep in the community, have him ask management and explain your position.
Allow me to ask what may be an obvious question of you.... Why did you sign the contract if you didn't want to use their mortgage company to begin with. Why did you choose to wait until after the contract was written to negotiate the contract?
0 votes Thank Flag Link Mon Apr 13, 2009
Diane - Obviously. That's why my question asked if there is a way to change and keep the incentives. It is pretty darn obvious I am not going to change if I lose the incentives. Regardless, your math is too simple anyway. You need to a present value calculation on the 17 years of payments saved and compare it to the 20K now.

Thanks, but this doesn't address my question - it's simply recounting the obvious and why I asked the question originally - is there a way I can work to keep the incentives.
0 votes Thank Flag Link Mon Apr 13, 2009
Hi Thesuperzman,
Legally - no. You signed a contract that says you recognize that the incentive is tied to using NVR mortgage. Why do you want to change lenders? Usually, almost always, it is a HUGE benefit to stay with the builder's mortgage company (even if their rates are a bit higher).
Here's why. Let me assume that the reason you want to switch mortgage companies is because of a better interest rate. Let me also assume that the rate is .125 better on a mortgage of $600,000. The difference between a 6% to a 6.125% is less than $100/month. Now consider the incentive. Let's assume they are giving you an incentive with a value of $20,000. It would take nearly 17 years to recoup the difference. ($20,000/100/12).
A suggestion might be to close with the builders mortgage company and refinance out of it shortly after closing. It will cost you a few thousand dollars, but you reap the benefit of the incentive.
Best of luck to you!
0 votes Thank Flag Link Sun Apr 12, 2009
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