Wednesday, May 21, 2008

Home Buying Experts Warn - Builder Loan Fine Print Could Cost You Thousands

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Here is an interesting news release by the National Association of Exclusive Buyer Agents about what buyers should look out for when dealing with a builder's mortgage company:

AVONDALE, Ariz., May 19 /PRNewswire/ -- The home loan packages offered by builders are often touted as being very convenient. But when it comes to evaluating the true benefits the picture is often quite different, according to the home buying specialists at the National Association of Exclusive Buyer Agents, (NAEBA). Recent difficulties in the mortgage marketplace bear this out.

"Mortgage shopping can take a significant level of sophistication. In addition, negotiations with a builder's mortgage company can sometimes be stressful and costly," stated Barry Nystedt President of NAEBA. "Home buyers still need to compare the builder's loan offerings to what is available on the open market. Complications arise when the buyer becomes obligated to the builder's lender without being able to compare the rates and fees other lenders may offer months later when the home is complete. Sometimes the builder's lender takes advantage of a buyer by providing an overpriced loan, which the buyer accepts, not wanting to risk losing the builder's incentives."

Read the full news release from the National Association of Exclusive Buyer Agents (NAEBA)