Home Buying in 44077>Question Details

1sttimer, Home Buyer in 44077

Mortgage through the home builder?

Asked by 1sttimer, 44077 Mon May 11, 2009

I am interested in a newly built condo that is unwarranted, but the builder has said that he has financing lined up through a mortgage broker. He will not provide me with the broker's name unless I sign a purchage agreement that would provide him a $500 refundable deposit. The deposit would also freeze the price of the condo if I were to buy it. What should my concerns be?

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Disclosure, disclosure, disclosure. This builder is acting very unethically. You have every right to know the name of the mortgage company prior to contract and deposit. Be careful.
1 vote Thank Flag Link Mon May 11, 2009
Everyone is correct. This builder sounds a bit desperate to me and my experience has been that desperate people do desperate things. Please contact a realtor or at the very least a lawyer to review contract details and protect your interests.

Dee Nofziger
Web Reference: http://www.ask-dede.com
0 votes Thank Flag Link Tue May 12, 2009
Hi Buyer,
1. Typically a builder will provide a 1 year builders warranty.
2. If you are financable, go to a regular lender (in 44077 area, National City, Third fed, etc)
3. Anyone who asks for a deposit without providing you all the information is a bit unusual.
4. There is no shortage of condos in our area, and condo sales are slow.(can you say "maintenance fee"....this has been the kiss of death with condo sales of late. When the fees get too hugh, the condos just sit a very , very long time on the market. ) Don't let him convince you that condo prices are going up just to get a quick commitment....they have all been going down just like other properties.
5. Have your own Realtor involved. It costs you nothing, and it will save you from making costly mistakes. Your Realtor will know just what questions to ask and can research similarr sales to determine the current value of that condo. Doris & Mike Wright /Century21 440-231-0977 if you need to talk in person.

Thanks and best wishes for a great buying experience on your first home~
0 votes Thank Flag Link Mon May 11, 2009
When something looks like a duck, quacks like a duck, there is a good possibility that it is a duck! Same thing holds true on this transaction.
The question should become, "Why is the home builder more worried about who you get your mortgage from than he is in selling his condo?"
By your screen introduction of 1sttimer, I'm assuming that you are a 1st time home buyer.
It may not be a bad idea at all to have a professional Realtor represent your interests in finding your new home. The services of a BUYERS AGENT will generally not cost you anything, Seller's usually pay the commission.
If I could assist you in this please give me a call at 440-487-2193 or e-mail me at jwirsing@kw.com
John Wirsing
Keller Williams Realty Greater Cleveland
0 votes Thank Flag Link Mon May 11, 2009
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