But I Won’t Do That…

Factory-built housing retailers and contractors want to do whatever it takes to satisfy your housing needs and to make sure that you have the best home-buying experience you can.

But, did you know that there are some things they just won’t do?

That’s right!

In some parts of the home buying process, no matter how much you want help, no matter how helpful retailers and contractors could be, and no matter how nicely you ask, there are some things they just will not do.

So, do they really want to be that unhelpful to you, the customer? After all, isn’t the customer always right?

The fact of the matter is that there are some ways in which you might want or expect a factory-built housing retailer or contractor to be helpful to you, but they are prohibited by federal and state law from doing so. The government has decided who can help you navigate certain parts of the home-buying process, and in most cases, that list does not include retailers or contractors working with you as a new home buyer.

Specifically, in years past, it was customary to help new home buyers navigate the process of financing their new manufactured or modular home. In a nutshell, new state and federal laws that were enacted in the wake of the housing downturn prevent folks who are not licensed mortgage loan originators (MLO’s) from helping with even some of the most basic things that would have been common practice in years past.

So, while our members will do many things to help you, unless they are licensed MLO’s, here are some things they cannot do:

• Complete your loan application
• Take your mortgage loan application
• Offer or negotiate loan rates
• Suggest a specific lender who might finance your new home
• Advise you on loan terms or discuss particular credit terms
• Present loan terms to you

There are some administrative things they can still do, such as faxing in the loan application that you complete, but what they can do is severely limited.

So, what should you as a homebuyer do?

Here are some tips:

1. Recognize that the retailer or contractor from whom you are purchasing a new home is very limited in what they can do to help you finance your home. Don’t expect them to do more than they can.
2. Ask lots of questions. Retailers and contractors CANNOT steer you to a lender or discuss specific terms and rates with you. But, they can discuss the loan process and provide you with general information.
3. Seek out a lender or mortgage broker with who you feel comfortable and ask them lots of questions, too. Like your retailer or contractor, you need to be very comfortable working with your lender or mortgage broker. Clear communication by all parties will make the transaction go much smoother.

Yes, retailers and contractors want to bend over backwards to please you, the customer. But, because of federal and state law, there are some things they just won’t do.

Cross posted to VBS Mortgage Blog.

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