2. The closing costs which can include a survey, simultaneous title insurance, and any other closing costs that you have agreed to pay in the contract you have (or will) sign...some of these items are required by your builder(seller) 3. PRE PAIDS pre paids include the first year of homeowners insurance, a few months of the homeowners' insurance premium (so the full amount wil be in your escrow ( the escrow in this area means the amount the lender collects each month for insurance and taxes...AND homeowners' association fees, etc....like CDD fees and property taxes...and possibly stormwater fee and garbage collection fee) and as just mentioned....the a few months of the property tax (based on one twelth of the yearly taxes), and the other fees just mentioned ....including homeowners' association fee, CDD fee, stormwater fee, and garbage fee.
We have used Prime Lending....there is no reason (that we know) that would cause us to be concerned about their integrity or business dealings. They appear to be a fine, reputable company.
It is NOT unusual for a builder to offer incentives like you mentioned for buyers to use their preferred lender....the builder has a relationship with a preferred lender....possibly suppying finance for the builder as well.....AND ....they trust that their preferred lender will do everything to assist their buyers in a prompt and professional manner. This is business "as usual".
You would be WISE to accept this assistance from your builder!
If you....or anyone you know....has a question...or needs guidance or assistance in real estate...keep me, Donna, and my son, Hickory in mind.....we are experienced, full time, active real estate agents who CARE.
"The Real Estate Lady"
Sharon gave a really great explanation. Having your costs paid by the builder is a wonderful incentive. I too have had buyers who used Pime Lending. As stated their consultants are courteous, prompt and sensitive to your home buying needs.
Wishing you much success in your new home purchase. Should you have any questions that your agent is unable to answer, give me a shout.
Charlie Chorman - REALTOR
Accredited Buyer Representative - ABR
Coldwell Banker Vanguard Realty
Prepaids are - one year homeowner's insurance, and your tax and insurance escrow which is three months that will be put in your escrow account at the bank towards next year's property taxes and homeowner's insurance.
Prime Lending is a mortgage broker and they have some great people. I have dealt with them before and they always do a great job.
It is almost always worth it to go with the builder's lender so they pay the closing costs. They are very competitive and will usually match the interest rate that you find elsewhere, in case they are coming in higher.
I do hope that you have a real estate agent representing you in your purchase, because the people working on site are employed by the builder. As nice as they can be, they have limitations that your own RealtorÂ® will not have.
I also recommend that you have your own third-party inspection. It is always a good idea to have an independent third-party go over the house.
Hope this was helpful - let us know if you need anything else.
Sharon H. Alters, GRI
Coldwell Banker Vanguard