June 1, 2020 at 4:12 am #68786gotem952Participant
So I read up on the way someone on this forum got incentives for new construction. But Im kind of new to this home buying process.
Obviously I will want to read into the paperwork the builder gives me. But do I actually apply for a home loan through them first? And what type of loan do I apply for using their lender FHA? USDA? or does it matter?. Or am I just signing a contract? From successful stories I read, the way to go is to apply through their “preferred” lender to get the incentives, And then present naca offer after, But the language in the contract from the builder needs to say that if they cant match, that I can still get the incentives they offered me. Also since the builder usually pays a commission fee to a realtor if im using one. Will it be beneficial for me to just do it by myself to maximize the incentives?
Thanks for you help. The only thing that sucks is, I’m not qualified yet, but I know I will be qualified when august comes around. Alot of nice new construction in my area are going quick, and I see its not a good idea to put a deposit down before being naca qualified.June 1, 2020 at 10:02 pm #68821TLM1972Participant
Our NACA agent got us the same incentives the builder were offering their buyers who used their in house lender. We allowed our agent to negotiate the refrigerator, washer and dryer and blinds in addition to money towards closing cost.June 5, 2020 at 11:52 am #69010pratikMember
1. You can’t use realtor commission as that will go to NACA/realtor. This typically doesn’t have anything to do with incentives the builder is offering. Realtor commission is already accounted for in the cost.
2. I would read the fine print of the contract. If the contract says that there will be incentives for going with the preferred lender, you will receive those incentives by going through NACA (as preferred lender won’t be able to match the NACA deal and will default). However, if the contract says that there will be incentives will be provided ONLY IF listed lender is used, you might not get it. Talk to your realtor and sales person for further clarification.
3. I would maximize incentive amount during the negotiation and then put it in writing that this amount will go towards closing costs (I would much prefer using the incentive money for buydown versus getting upgrades/appliances, as the money you will save with lowered interest rate will be in the order of hundreds a month over the life of the loan!)
4. Incentives differ from house to house for the same builder in the same community. The inventory house that hasn’t sold for months (you might want to find out why) or the house that is immediately next to railroad tracks/electricity cable might be selling for cheaper than the rest of the houses (check the details and make sure it is a good fit for you/your lifestyle) and use these factors to maximize your incentives.
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