Raleigh, North Carolina (PRWEB) March 21, 2014
Best Raleigh Mortgage Broker, Andy May, explains top five ways to tell if the consumers' builder is deceptive. Top five ways to tell if the home builder is deceptive. The Consumer Financial Protection Bureau is here to help with unfair and deceptive mortgage practices. But if the consumer doesn't have a personal relationship with one of these Washington D.C. employees, can the State Banking Commission help? Can the consumer understand if the builder is deceptive? It's more than the Chinese wall-board situation. It's about full disclosure at the closing table. Here are the five ways to tell if the consumer is getting a fair deal.
First, if the builder only allows one lender-option the consumer may be deceived into thinking their is an "open market" for the property and the loan. Andy May, the mortgage expert, has seen many cases where a "Too-big-to-fail" bank offers a "great deal" on the mortgage. The builder indicates that the consumer can only use this one Bank. Why? Often times the bank changes the rate and fees and/or the builder simply jacks the sales price up and papers over the appraisal. The consumer loses by potentially purchasing an inflated home. The result? The community may implode on itself. This deceptive practice continues to go on despite all the changes in the mortgage industry. The consumer, rather than save .125% on the rate, winds up potentially losing $25,000 or more. Regulators have tried to stop this insidious practice, with limited success.
Second, if the person selling the property to the consumer is the same person "pulling" the consumers' credit and signing the purchase and sales contract the consumer may be getting "bundled". One client came to ADRMortgage.com in this situation, and often times the builder keeps the earnest money and due diligence checks when the consumer doesn't want to use the in-house providers (ADR got this consumers' due diligence and earnest money back). Builders have quite the profit incentive to simply keep your down payment, due diligence and earnest money. Many consumers never get their money back. If the Realtor says, "put your best foot forward and pay full price" - run, don't walk.
Third, hire custom builders. The big box builders are professional at getting the most profit out of the deal - and even potentially leaving the consumer with no mineral rights to the consumer's own property. Be a wise consumer and google the US Justice Department or the State Attorney General's office and the big box builder's name prior to stepping foot in a new development. If there are over a million complaints on the builder, simply select a smaller custom builder that isn't the "one-stop-shop" experience that is being sold. Remember, if all the consumer's advice is coming from the same circle-of-companies (owned or paid under a CBA - controlled business arrangement) the consumer may pay more than the property is really worth.
Fourth, check the local government websites (http://services.wakegov.com/realestate/) for the cost per square foot, not of the builder's offerings but rather, of the neighborhoods within 1 mile of the builder. Here the consumer will see what the cost per square foot is, for competitor properties. If the builder wants an extra $25 or more per square foot the consumer should seek professional help.
Lastly, if the builder has the potential to open up the back-40 to "estate homes". Run, don't walk. These often times wind up never happening, or worse yet getting converted to town homes. Andy May has built several custom homes and knows what to avoid and what the consumer can expect.
Call Andy May if interested in getting pre-approved for a loan at 919-771-3379.
Get the most value out of a home sale or purchase by working with licensed professionals that have significant experience. Why risk your biggest asset to an 18 year old unlicensed person at a bank or credit union (these "loan officers" are often times unlicensed, although afforded lofty titles)? Find additional information from Andy May at Andy May's blog. ADRMortgage.com was founded by Andy May in 2005. Refinance, Purchase, VA, FHA, and nearly every loan product - for additional information, please go to http://www.adrmortgage.com or contact Andy May directly. License number 103418.