Re: Pre approval for a mortgage
 

HB, in reality a pre-approval letter is worth about the paper it is written on. If you read the letter carefully, it will have enough contingencies to choke a TV bison. The loan will "depend" on the appraisal being satisfactory, that nothing has changed financially since the date of the letter, that the facts given by the borrower are correct, that the interest rate has not gone up, etc. Pre-qualifying letters are even better jokes -- the paper is worth more than those letters.

The advantage to a pre-approved letter is that a reputable lender will stand by it so long as the property appraisal is satisfactory and nothing major has changed since the date of the letter (some will actually state that the letter is good for X amount of days regardless of anything but appraisal value). If you buy a pre-owned home from someone other than TV, the pre-approval letter is a good negotiating point since it should enable the loan to go through faster. Most pre-approvals have already done the groundwork (credit check, employment/income and bank verifications, etc.). TV doesn't care. If you close on time, great. If you don't, penalties will be affixed.

If you have any questions about your letter, give me a shout out. I used to do mortgages.

Re: Pre approval for a mortgage
 

Red... :agree:

You are right on the money..Just because TV has their own mortgage company, does not mean you are going to get the loan..

Re: Pre approval for a mortgage
 

For those of us used to making "real" contracts that protect both parties, this was good enough reason for me to stay away from buying from TV directly. You won't have these problems with a re-sale.

Good thing too as we had a minor glitch with the lender's paperwork production and had to extend the closing by a few days. No telling what TV would have imposed for penalties. Forfeiture of deposit maybe?

The thing that really turned me off with TV was the no negotiation, no refund deposit issue.

I've never heard of a retail realty contract without the financing and inspection contingencies, etc.. Perhaps it's just a comfort level but I prefer "win-win" contracts, not " I win - you lose" contracts which is what the TV contracts are IMHO.

Re: Pre approval for a mortgage
 

captain1202,
:agree: 100%

Re: Pre approval for a mortgage
 

Capt. 1202 and fourpar...

I don't agree...........I think TV are fair in their dealings.....
Four years ago when I purchased a home the closing date was firm......I was told at that time that to miss a closing for any reason was a $200.00 a day penalty and if TV missed a completion day , they had to pay $250.00 a day plus your lodging and meals for every day they were late ,,And they said we are "never late".
They were almost late with us but worked all night to finish it in time for the closing at 9:00 the next morning............Naturally I told them to take their time but they laughed and said "we'll be ready " and they were. the house was beautiful .....I knew what I was dealing with and made plans accordingly..............

fumar

Re: Pre approval for a mortgage
 

Fumar,
I think $200.00 per day is outrageous! I was supposed to close on my new home this past Monday, so far I owe TV a $600.00 penalty, as of tomorrow..My closing will probably take place next week..

The delay is not my fault, but the fault of the lenders..Do you still think this is fair?? We are buying one of TV's new homes, the least they can do is take the circumstances into consideration, and go from there..Everything is black and white, no grey areas..

I think it is very unfair!

Re: Pre approval for a mortgage
 

Everyone should compare the contract on a new home from TV and a contract for a resale home. There are significant differences that could have severe financial implications to you. This is why I would never buy a new home from them. Resales are fine and the contract can be done to protect both parties. Contracts for new homes only protect TV. I guess if I had people lined up to buy I would do the same thing. But for now I will only buy resale.

Re: Pre approval for a mortgage
 

Fumar,

The point is TV contract is a one way street, and the buyer cannot make any changes to their terms and conditions. If you accept that, and make your plans accordingly, there isn't a problem. But if there is a hiccup caused by a third party, it becomes your problem. And those who do not fully understand contracts (which is probably more than half the buying public) you may be in for a big (expensive & unexpected) surprise. And that sets a little on the south side of fair to both sides of a contract.

I (like you) accepted the terms of TV's contract. But I (and You) did so understanding exactly who was doing what to whom. I suspect most do not have that perspective, and that is less than most consumers expect, and deserve.

Re: Pre approval for a mortgage
 

Gotta go with the great one on this. The issue is that it is your 3rd party that is causing the problem, not TV's. The problem is between you and that party. Now if the 3rd party that failed to deliver was the builder or one of his suppliers or subs, the problem would be TV's and he would be at fault and in default. You would be entitled to the damages and expenses Fumar specified.

Re: Pre approval for a mortgage
 

We bought in April on our 3rd lifestyle visit, but only after we got pre-approved from Bank of America on line. We used the approval which was .5% less than offered by the Villages bank to have them match it. Do you banking ahead of time and have your proof to give them for their consideration.

Re: Pre approval for a mortgage
 

Donna...

My point exactly! What if it was a 20 day delay?

Re: Pre approval for a mortgage
 

Since we used our bank up north, Bank of America and declined to deal with the developer's bank, Citizens, I read the contract word by word. There are penalties on both sides but you can guarantee that the developer will have your home ready on the date the contract says it will. The penalties are all on you as the buyer.

Given the financial issues today, I would, before I signed any contract, contact my bank to get confirmation that my preapproval was still in good standing. The sales rep kept telling us that if BofA didn't have every piece of paperwork done on the date required that we would be in default. A bit of a scare tactic but actually true as well. Now BofA was going to be on time but we were in contact just about every day because the penalties were financial and big time financial.

We had friends who had their home equity loan decreased out from under them which proves that loans are only as good as close of business on the day you sign the papers.

I don't know what bank the pre approval is with but if I were the borrower, I would be in touch constantly with this bank getting assurances that the paperwork would be done well before closing. Best of luck to all in this case.

Re: Pre approval for a mortgage
 

12ridehd: This is yet another reason that makes buying a resale more favorable--no issues like this. In fact, we ended up leaving the elderly, infirm sellers in our house for a week+ after the closing (only after we had been in communication with the movers working with the assisted living facility that the sellers were moving into; we did have to have some idea of what was happening in terms of arranging for delivery of our furniture...) based on a handshake between honorable people; and the sellers did agree to pay for certain things after they were gone again based on a handshake, which they did (carpet cleaning, two minor repairs). People may think we were a little crazy to do this. Not that I would ever expect it, but can you imagine TV (or in truth any major developer) doing anything like this based on personal issues? Ha!

Another really major plus with a resale has to do with closing costs. With new construction, it's my understanding that the buyer pays for everything. With a resale, the sellers pay for virtually everything, including costly items like title search and insurance, deed recording stamps, and so forth, while if I recall correctly our only closing cost was half (shared expense between buyer and seller) the cost of the actual recording of the deed, which I think was $25 for each of us. Having bought and sold homes in New York over the years, I was flabbergasted at how reasonable and simple it was with a resale at TV!

Re: Pre approval for a mortgage
 

Re: Pre approval for a mortgage
 

Kathie, that's great that you had such a positive experience! Congratulations again!!!

The first time I ever had a new house built for me, it was a real challenge in many ways, but not insofar as the builder himself was concerned. We invited him and his wife for the first dinner ever prepared in that house; he and his family were terrific!

But I still wouldn't build or buy new again....