Sean said
We have a contract with a builder. We are approved for an FHA loan. We knew that in order to only have to put down 3 percent, we had to get a case number before the end of the year because in 2009 it would change to a 3 and half percent down requirement. We did everything we were supposed to do and everything was great, we had a case number and everything.Then, our Realtor call us and informs us that she has the wrong address on the contract. So, we initialed the address change on our contract on the 31st after asking her if this would cause us to have to pay more. She said no. Today, our lender calls and tells me that she had to submit a whole new loan application because the of the incorrect address and that because it is now 2009, we will have to pay the additional 1/2 percent. This is very frustrating. What are our options? It just doesn't seem right that we have to pay for someone else's (the listing agent) mistake. In fact, I don't see how I am going to be able to come up with the extra money. I have asked our realtor to set up a time for us to sit down with the builder and the listing agent to discuss this. Any advise before that happens would be nice. Are we just up a creek without a paddle or is there a way to get a paddle? :)Also, the builder has agreed to pay 5k in closing costs. Our closing costs will be only around 4k, actually 3,605 because we already had to pay 395 dollars of the closing costs in an application fee. Is there a way to get him to pay the 5 k before we close, so that we can keep the extra money and put it towards paying the extra half percent?

Adam said
This actually depends on the contract that you initialed. If the intial you gave was on a GFE (good faith estimate) and that paper said 3.5% then you are unfortunately legally bound to pay that amount (especially if you initialed it since a "lawyer" would argue that you have to read a document carefully before signing)If not then you should specify that it was the LISTING agent's mistake and seek the counsel from a lawyer as you might be able to get them to pay off the mistake as it was due to their mistakeBut I would still recommend talking to a lawyer and taking all the documents with you to see if you have a case (as I don't know which documents you initialed and signed). It is a crappy system but that's how these realtors and agents make their money. I would always recommend going to a big bank over a mortgage broker as they always do such shady practices and at work that's all the customers mention to us.

Lucas said
My wife and I call it the chain jerk. They do it to you, the next guy and the next guy and the next guy. It standard procedure. Its your choice if you want to deal with it or go to war with it. Most just submit and deal with it. Expect it in deal years from now.... and forever more as evil never sleeps.

evelinetola said
The best thing you can do is forget about getting a house built, rent a house and save your money. There has never been a new house completed for the original price estimate. If you sign a contract to build a house you will end up paying at least 10% more than the original estimate, and if you don't have the extra cash before the house is done you could lose everything. If 1/2 of 1% is going to make that much difference you should make a new plan.

new_shoe said
You need to proof read everything that are about to sign, that was bad judgement on your part. Your realtor said you wouldn't have to pay more so ride her