Question Details

Carrie, Other/Just Looking in Princeton, NJ

Builder has special financing for their project. Should I proceed or are there hidden traps?

Asked by Carrie, Princeton, NJ Mon Jun 2, 2008

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Although I don't live in your area, and I don't know which builder you are using, we have found that often builders have mortgage companies that help them offer special financing packages to their buyers. Often times, if you use their lender they will offer special incentives, or the builder may agree to pay some of your closing costs. Each builder is different. Ask them what the advantages are of using their lender. Then, contact an outside lender and compare good faith estimates of closing costs.

Be sure to contact your local Builders and Contractors Association (if your area has one) and contact the Better Business Bureau prior to your purchase. See if there are any complaints filed against the builder. Ask the builder for a list of homes that they have sold in prior years, and take a drive by them to see how they look today.

It is advantageous to get a buyers agent that is able to assist you in your purchase. If you choose not to hire a buyer's agent, then you may want to have an attorney review the builders contract, terms and financing options before you sign anything.

Best wishes!
0 votes Thank Flag Link Mon Jun 2, 2008
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