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

RISMEDIA, May 22, 2008-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. Read more...

Richard says...
This article highlights the very real problem posed when home buyers think that walking into a new builder development to buy a home is the same as going to the grocery store to buy a can of peas. The builders agent works for the Builder...not you the home buyer. His/her job is to get the most money out of your pocket as ethically possible and make the most profit for the Builder.

Builders make additional profits from you, the new home buyer, by using their recommended lenders and their recommended Title Companies. Is that a surprise to you? Do you think maybe having a savy Realtor that understands the New Home Market and knows how to negotiate with Builders would be a smart thing to do? In most transactions, the Builder will pay your Realtor his/her fee, not you. You may ask....if that is the case, won't I get a better deal if I don't have my own Realtor represent me? It will save the Builder 3 to 6 % on my home price. It sounds logical. But...you don't know the Real Estate business. Please re-read this article. I also recommend reading all of the other articles posted to this Blog as well.

Read this new FREE report, Ten Secrets Every New Home Buyer Should Know for more information.

Got an opinion? I'd love to hear about it. Post your comments now.

Happy Househunting :-)

Housing affordability best in four years

Tuesday May 20, 1:23 pm ET By Les Christie, CNNMoney.com staff writer

With prices crashing around the nation, home price affordability has improved dramatically in many U.S. cities.
As a result, 53.8% of all new and existing homes sold nationwide during the first three months of 2008 were affordable to families earning the median household income of $61,500, according to the latest Housing Opportunity Index released Tuesday by Wells Fargo and the National Association of Home Builders (NAHB). Read more...

My Commentary:
If you have been sitting on the fence waiting for prices to fall even lower, NOW is the time to beat the crowd. When the crowd gets out there, the best deals will already have been snapped up. The remaining sellers will be much tougher on helping you with your downpayment and closing costs. Remember just a few years ago, everyone was frantic to buy a home, like it was the last train out of town, even a crappy fixer upper at crazy prices. Don't let that happen to you this time.

Find homes for sale from ALL Real Estate Companies that match you are looking for here.

Get your Free Report on How to Stop Paying Rent and Own a Home the smart way.

Got a comment? Post it. I'd love to hearwhat you think about this or any other articles.

Have a great day,

Richard