A Quick Note About Lenders and NVR

I mentioned in a previous post that we are not using NVR as our lender.  This because our relocation provider is also our mortgage servicer.  This is not to say that NVR is not a good option.  We actually didn't have a conversation at all with an NVR rep.

As a potential buyer looking to build, you do have options outside of NVR.  There are plenty of reviews about good experiences with NVR and there are plenty more with bad experiences.  I have some tips or thoughts to chew on for you if you are going this route.

• Have a second lender on standby.  Perhaps a lender you have used in the past or a well-known lender.  There are plenty of buyers out there in the interwebs who started the process with Ryan Homes, provided all their information, had their credit checked and debt to income ratios evaluated, etc, etc., and were advised that everything looked good.  The buyers go through the process of picking out their options, picking out flooring and meet with Guardian.  The buyers have also met with the NVR rep very early on.  However, after about 45 days or more, the potential buyer is denied financing for various reasons after a month of excitement and anticipation.  A second lender should be firm, factual, and fair in their evaluation of your ability to buy/build a home and you should demand that they be.  I have read where many buyers were told time and again that their loan approval was going to be "Good" or "no problem" only to be turned down.

• Go in with a strong, verified pre-approval.  If your SR tempts you with incentives to use NVR, don't be afraid to haggle and even look into NVR, maybe NVR can get a better rate.  But always keep that second lender on standby if you choose to go with NVR.  You never know what will happen.  This will also potentially protect you from disappointment.  Remember, when you walk into a Ryan Homes model home, you will see a SR, they will want you to build a home, they will get you excited, they will get you to love what you see and what you could potentially have.  There is nothing wrong with that.  As a buyer, you don't want to get sucked into buying more than you can afford or potentially, not able to qualify for a home loan. This is why a second opinion is always good to have.

• If you use an outside lender with Ryan Homes, be sure your outside lender knows what the SR and Ryan Homes will want so that Ryan Homes can proceed to build.  The loan process changes slightly since this isn't considered a construction loan and it is not a pre-existing home. You don't want the build process delayed because your lender doesn't know what to give Ryan Homes and Ryan Homes isn't communicating exactly what they need from your lender.