Pulte Mortgage Headache
Well, the excitement of buying a Pulte Home has worn off.
In order to get the incentives offered, we had to sign on to use their Preferred Buyer Discount Program. That is just a fancy title for you have to use our Title company and Lender to get the money we dangled out there for you so we can make it back in the profits we make on your loan and title insurance.
Okay, so we get the 10% off the sales price. We do our upgrade choices and those add up to $10k. We are thinking we will use the $10k offered for upgrades to keep the sales price the same. Oh, how naive we were. We got the (Good Faith Estimate)GFE from Pulte Mortgage and I was shocked. Their interest rate was .5 higher than I expected. I went to my bank, USAA (which I LOVE), and got a GFE from them. They were .625 lower. Also the closing costs were very different. Pulte was $3,330 more (origination and pre-paids not included) than USAA. The origination fees were $1300 difference. The mortgage insurance for Pulte is $190/month, USAA only $88. We have an average FICO score of 797. I thought Pulte would be more competitive. I tried to negotiate with them. Come on it costs $150 for document stamp and $50 for electronic documents, ridiculous. They would not discount a single fee or lower interest rate or origination fees. NO negotiating. What they offer is it. So in order to not have it cost me a fortune at closing, we have to use the $10k to cover closing costs and buy down the interest rate. If I go to USAA with their 6.75% interest and $4700 in total closing costs, I loose the $10k. It's such a scam.
Of course, Pulte Mortgage says, "We are being very competitive, look with our mortgage you pay nothing out of pocket at closing." However, they fail to recognize that if they were competitive with their costs and rates, I should have walked away with out paying closing costs AND gotten $5k applied towards the sales price of the home.
To be honest, I thought I was going to pay $126/sq. ft. for my home, now I am going to have to pay $131/sq. ft. With the market still correcting itself, I'm not as confident that I got a good deal. I feel deceived and frustrated by the lack of negotiation. With an average FICO of 797, their rates and costs should be negotiable. Am I wrong?
I have learned a lesson though. We should have asked for a GFE before signing up to buy the home. Heck, you do that before you buy a resale home. You never sign up and agree to use a mortgage company BEFORE you see what they have to offer. Dumb, Dumb, Dumb.
Then I go on the Internet and see all the issues that new homes have had with these builders and really doubt our decision. At least we had a professional home inspector come in and look at the place pre-dry wall. He only found minor issues like missing strike plates, nail holes through moisture barrier stuff, nothing major. However, after reading many of the stories on line, I may hire a structural engineer next? If we pull out now, it will cost us $4,000. Great websites to research home builders are: www.hadd.org and www.hobb.org
So, what do we do? Buy our new Pulte home for a higher price than we expected. We still have to put in ceiling fans, window coverings and landscape the back yard. I could get a nice resale home for the same per sq. ft. price and it would have all those things already. Granted I may not have the color choices I would want for the granite counter top, tile and carpet, but I would be no further behind than buying the Pulte home. Ahh, but the $4k.
Also, haven't sold the Subaru Outback yet. Things are really up in the air right now financially and it is causing me stress. Who needs it?
Still have my job though, so that's something positive to end on.