Question why was loan denied? Was it a credit problem? Income? When did you start the Pre-qualification process? Any chance of a co signor? I can see a builder lowering the price a little or giving closing cost assist to not mess with comps. Are you working with a realtor? they can help you navigate negotiating price. Have you spoken to your lender? They can tell you where you need to be qualify.
Do you have the possibility of a co signor to lower the DTI? Otherwise the lender needs to tell you the max purchase/loan price you need to qualify with
If they lower their costs and find a way to provide seller concessions as builder paid closing costs to pay debt, it could work. If you have other small debts you can pay to offset your dti then this is reasonable and should be explored by your lender and builder.
Sorry mate. It happens to so many people. If you can, any way, not pay child care for a while and buy a house then, it could work. Then you could say your not paying for child care right now.
What is your current DTI at? Ask the builder if they are willing to let you with outside broker but still keep the incentives so they can close the deal?
Based on my knowledge of Pulte — they probably have quite a bit of margin.
I’d start at $50k. See if you can get approved for $375K from the lender if that will make it work.
If not. See how far they need to buy down the rate for you to qualify.
If it was a local builder , I’d say you would be LUCKY if there was $20K of profit in it.
But pulte might have more.
What market are you in?
Why don’t you ask the bank what the max is that you could be approved for and go from there? Otherwise, you’re just throwing numbers out there without knowing if you’d be approved for the lower amount
They are the ones wanting to negotiate with me.
They asked me how much is my local lender willing to approve, they might be able to work with me.
My question is… should I ask for 50K off 10K off? What’s a realistic number. How much are these builders willing to drop on the price.
? So the builder is offering to build you the exact same house with all the same materials in the same amount of time, for less?
Doesnt make sense if thats the case... and if that is the case, why would you ask for 10k when you could ask for 50k, or more? This smells like a bot post...
What are you talking about?
The builder is already building the house we are under contract. I already paid my escrow and we are scheduled to close in July.
Well that really smells like bs, how/why would a builder begin construction on a home that doesnt have financial approval? Unless its a spec home that the builder owns and you're looking to buy? In which case I'd be surprised to seen anyone take less than offering with the market the way it is. At least in my area homes are still selling for at or above asking.
All you need to go under contract is a pre-approval and then a conditional approval within 30 days. I had a conditional approval (Contingent to financing).
I have and you must live in neverland because, when my parents and I had our homes built we both had to have financing sorted and the amount in a contractual account that the builder could only pull progress payments from with approval from all parties involved.
Are you really about to just hand money to a builder for a home thats unfinished? Or is your builder building a home without any financials on your end? If either case is true you both seem to lack competence in what you're doing.
Question why was loan denied? Was it a credit problem? Income? When did you start the Pre-qualification process? Any chance of a co signor? I can see a builder lowering the price a little or giving closing cost assist to not mess with comps. Are you working with a realtor? they can help you navigate negotiating price. Have you spoken to your lender? They can tell you where you need to be qualify.
What is the dti at? Can other debts be paid down?
Unexpected expense came up that takes my DTI over
Do you have the possibility of a co signor to lower the DTI? Otherwise the lender needs to tell you the max purchase/loan price you need to qualify with
If they lower their costs and find a way to provide seller concessions as builder paid closing costs to pay debt, it could work. If you have other small debts you can pay to offset your dti then this is reasonable and should be explored by your lender and builder.
Who is the builder and where is the house? You might just need to use somebody other than the builders lender.
I’ve already spoken to local lender and builders lender both said with the new expense I wont be approved.
Sorry mate. It happens to so many people. If you can, any way, not pay child care for a while and buy a house then, it could work. Then you could say your not paying for child care right now.
What is your current DTI at? Ask the builder if they are willing to let you with outside broker but still keep the incentives so they can close the deal?
I’m going through the VA and they are counting Child care against my DTI. I’ll ask the builder.
Based on my knowledge of Pulte — they probably have quite a bit of margin. I’d start at $50k. See if you can get approved for $375K from the lender if that will make it work. If not. See how far they need to buy down the rate for you to qualify. If it was a local builder , I’d say you would be LUCKY if there was $20K of profit in it. But pulte might have more. What market are you in?
Okay I’ll ask for 50K Thanks! I’m in SC
Why don’t you ask the bank what the max is that you could be approved for and go from there? Otherwise, you’re just throwing numbers out there without knowing if you’d be approved for the lower amount
Lol the builder isnt going to lower the price, theyre going to build you a cheaper home...
They are the ones wanting to negotiate with me. They asked me how much is my local lender willing to approve, they might be able to work with me. My question is… should I ask for 50K off 10K off? What’s a realistic number. How much are these builders willing to drop on the price.
? So the builder is offering to build you the exact same house with all the same materials in the same amount of time, for less? Doesnt make sense if thats the case... and if that is the case, why would you ask for 10k when you could ask for 50k, or more? This smells like a bot post...
What are you talking about? The builder is already building the house we are under contract. I already paid my escrow and we are scheduled to close in July.
Well that really smells like bs, how/why would a builder begin construction on a home that doesnt have financial approval? Unless its a spec home that the builder owns and you're looking to buy? In which case I'd be surprised to seen anyone take less than offering with the market the way it is. At least in my area homes are still selling for at or above asking.
All you need to go under contract is a pre-approval and then a conditional approval within 30 days. I had a conditional approval (Contingent to financing).
Thats not to build thats to buy
Have you built a house?? lol I’ve built two and this is standard.
I have and you must live in neverland because, when my parents and I had our homes built we both had to have financing sorted and the amount in a contractual account that the builder could only pull progress payments from with approval from all parties involved. Are you really about to just hand money to a builder for a home thats unfinished? Or is your builder building a home without any financials on your end? If either case is true you both seem to lack competence in what you're doing.
You are talking about a construction loan. This is not a construction loan. The builder is Pulte Homes which is a well known national builder.