Must use builder's mortgage co.?

[maddux]

maryland. we are trying to buy a townhome and have been told by the builder that in order to receive the finished basement and 1.5 points toward closing incentives, we must use their mortgage company. the contract states that if we do not use their mortgage company, the price of the home will increase by $7,000. is this legal?

 

[HomeGuru]

Has this contract been fully accepted by both parties?

 

[Seanscott]

My question would be:

"Is it legal for the builder to get a kickback from the mortgage company?"

That's what's really going on here. Car dealers use this method also.

 

[maddux]

yes, the contract has been accepted by both with the contingency that we approve of their mortgage companies terms.nvr owns the mortgage company and the builder (ryan homes). so they are actually one company. can I demand that they let us use another mortgage company and include the incentives. the incentives were not advertised as a tie in. they were put on the quote for the house as included. there was no clause in the advertising material about having to use their company!

 

[HomeGuru]

Then don't approve of their mortgage company.

 

[rkupiec]

Ryan Homes

If you don't get the finished basement does the price still go up the 7000? Get another mortgage company and finish the basement yourself for far less...if you mortgage the basement you will be paying interest on it for the life you your loan..

Take Care

 

[pojo2]

If you don't get the finished basement does the price still go up the 7000? Get another mortgage company and finish the basement yourself for far less...if you mortgage the basement you will be paying interest on it for the life you your loan..

Take Care

Do you realize you have replied to a post that is almost 4 years old??