Lender

[VI2dbone]

Hi , I am purchasing from Ryan’s Home in MD. Even though I am using NACA and qualified through NACA the sale rep told me I still needed to apply to their lender to make sure I am qualified. I asked my realtor and she said yes it is standard. They are just making sure I am qualified. That does not make any sense to me. Have anyone experience this? I am not going to apply to their lender by the way.Will this stop my chance of owning the home ? I already paid my earnest money. Thank you in advance.

[southflorida]

It should not affect your NACA qualification, you may just have to write a Letter of Explanation indicating the reason why you applied with another lender

[VI2dbone]

Is this a standard practice? Should I do it?

[southflorida]

You can do it

[Pearl609]

@VI2dbone I did the same thing and it was fine. I wanted to secure the lot and I was not NACA qualified yet, so I got pre-approved by the Builder’s preferred lender. Once I was NACA qualified and had all my MRF, I changed my lender to NACA.

You just have to write and LOE saying you were shopping for other competitive mortgage options.

FYI… Ryan Homes told me they do not give buyers closing costs when working with NACA so please make sure you clarify that if you are counting on any closing costs for buy-down

[GlennyP]

@Pearl609, did you use Ryan Homes to build your home? If so, how was the process? Do you have any advice when using them? Negotiations, etc.?

[Pearl609]

@GlennyP no I did not use Ryan Homes because they did not give closing costs with NACA

[TTrumble]

Hello VI2dbone,

It’s okay to to apply with their lender, even though it’s a moot point. They can’t force you to use their lender, and you are already qualified through NACA, so what’s probably happening is the builder is getting a commission for submitting your application to their lending source.

When they come back with an approval, go ahead and try to negotiate with them for any incentivews they may offer. Tell them they need to either beat NACA’s terms or give you the incentives. Play a little hardball with them.

Tim Trumble
Online Operations, NACA
ttrubmle@naca.com

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