Awesome News for Charlotte New Home Buyers!
Posted March 27, 2008
Charlotte New Home Buyers get Better Deal!
Most large home builders today also own mortgage companies. This is an additional profit center and until recently, they have forced their home buying customers to provide the additional mortgage profits. These builders will typically offer tremendous “savings and discounts” when buying one of the builder’s homes, but ONLY if you use their mortgage company. And that is when the mortgage company will hit them with more fees and higher rates, all as an attempt to get back what they “gave away” with the home’s “discount.”
This is one of the down sides to “affiliated arrangements.” When your real estate company or builder owns your mortgage company, title company, insurance company, and attorney’s office, one must proceed with caution. All of these areas are potential profit centers, and while I have nothing against profit (profit allows a business to stay alive and help others) I do have a problem with the extra profit being “sold” as a way to “save” you money!
Recently, Ryland Homes / Ryland Mortgage agreed to make changes in how they conducted these “discounts.” In an settlement with the North Carolina Commissioner of Banks, Ryland Mortgage has agreed to not inflate mortgage rates and fees to cover the “discounts” of buying a Ryland Home. Ryland also agreed that “discounts” would be true discounts and that if any discount requires use of their mortgage company, it would be fully disclosed to the buyer.
The NCCOB believed that Ryland had over charged homebuyers beyond the legal limits in North Carolina. While not willing to admit “wrong doing”, Ryland Mortgage did agree to refund approximately 850 home buyers to settle the allegations. On average, these home buyers should see about $250.00. (Don’t spend it all in one place!)
The good news this brings to Charlotte home buyers is the knowledge that the North Carolina Commissioner of Banks is aware of the problem and is going after these types of arrangements. And with the pressure the NCCOB can bring, we may begin to see changes in the practice of “fake discounts” and required services!
This also means that buying a New home in Charlotte does not mean you have to use the higher cost builder’s mortgage company (at least with Ryland Homes)! You are free to work with the mortgage lender you feel most comfortable with, and that can mean a world of difference in your experience!
This website provides information on FHA and VA loans, in addition to the hundreds of other conventional and jumbo mortgage loans available. As a mortgage loan officer, Ed has proudly served home owners and home buyers in the Charlotte area (including Concord, Gastonia, Matthews, Monroe, Huntersville and Ft. Mill as well as all of North and South Carolina.)
Apply online for your Charlotte area mortgage loan
or call 704-651-8704 for your free mortgage consultation.
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