November 17, 2017 at 11:02 am #39402hrgr21Member
I am buying a new home with DR Horton through NACA. If I go through the preferred lender I can get 5k from the lender and 5k from the builder. Since I am going through NACA all the builder is willing to give me is $750. Just doesn’t seem right at all. It puts me at a disadvantage financially to use the builders lender and they know it. Any advice? I have already spoken to the VP of sales and I guess this is the best they can do so I am told.November 17, 2017 at 1:34 pm #39407
You need to play a little hardball with DR Horton. They apparently put a lot of pressure on their salespeople (similar to what Wells Fargo did) to get you to use their “lender”, since their name pops up most frequently with this kind of situation.
The fact is the “builder” and the “lender” are the same company. DR Horton has their own in-house mortgage brokerage, which they use as an additional profit center (i.e., get more money out of your pocket). It does indeed put you at a disadvantage, because of the higher interest rate, closing costs and so on that will actually cost you a lot more over the life of the loan using their “lender”, even with the so-called incentives. They make it look like you’re getting a great deal when in fact it will cost you more money (which of course then goes into THEIR pockets). that’s why the “builder” can suddenly offer more in addition to the “lender”. It’s the old “carrot on the end of a stick” enticement.
The bottom line is that you shouldn’t take “no” for an answer. They CAN give you the larger incentives even though you are using NACA, but this is a case where it’s going to be up to you to advocate for yourself and fight for the best deal possible.
Online Operations, NACA
firstname.lastname@example.orgNovember 17, 2017 at 4:01 pm #39409hrgr21Member
Thank you very much for your response. My first contract they countered at zero. After emails, calls, and tweets they agreed to 750 from the builder. I’ll try another round of calls and emails but at this point I might end up missing out all together. The subdivision is selling quick and prices keep going up. To be honest they know if I dont buy the lot someone else will.November 17, 2017 at 4:13 pm #39411
Hi @hrgr21, as I said in the other thread, they need to give you 5k with NACA ONLY IF you sign the contract that you will go with their preferred lender. When you bring NACA offer on the table, their preferred lender will default and therefore you will get the 5k. Also, you should get the 750, totaling 5750 towards closing costs! If you are doing upgrades in your house, you should ask for the discounts too, which all should go towards your closing costs (buying down) rather than decreasing the purchase price of the house! Stay focused and assertive. Best wishes to you! P.November 17, 2017 at 6:11 pm #39421
I had honestly forgotten that you were the one with whom that had happened! Thanks again for sharing the experience.
Online Operations, NACA
email@example.comJanuary 4, 2019 at 12:59 pm #47116msleslieMember
I was hoping to get some builder incentives to use towards my buy-down; however, the wording in my P&S agreement state I will only get the incentive if I use their preferred builder. Has the wording changed or was that similar to yours and you were still able to receive the incentive?January 4, 2019 at 2:02 pm #47118
You will get incentive if you use their preferred lender.
However, they cannot punish you for using ANY lender. They can only incentivize you for using their preferred lender.
If you bring a competing offer, their preferred lender is obliged to match that offer and STILL provide you incentive.
If their preferred lender cannot match the offer (e.g., NACA), they are still bound to give you incentive, as their inability to match the offer on table is their problem and not yours.
If they do not match your competing offer (NACA) and do not provide you incentive, they are calling for a legal action which would be much more expensive to them than a few grands of incentives.
Please go ahead and sign the preferred lender contract. They will be bound to provide you the incentive. Disregarding whatever your agent wants you to believe.
Cheers and best wishes!
PratikJanuary 4, 2019 at 2:07 pm #47121January 4, 2019 at 2:17 pm #47124
Many thanks @TTrumble for confirming the receipt of the email and I look forward to your following up. Just so you know, I also emailed Mr. Erick Exum on advice of our local NACA RED agent Mr. Kevan Chisolm. I surely need help in coming months as I am moving on May 1. Need to get my ducks in line! 😀
As to D. R. Horton information, I give all the credit to my salesperson there who has shown me the way! Every tiny bit matters as it all adds up!
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