Collins Builders
Discrimination

Collins Builders... Consumer Beware!!!
This is based on personal experience dealing with Collins Builder in the Jacksonville Florida area.

The builder has several tract homes located in the Jacksonville area. They advertise "We will pay closing cost if you use our preferred lender". Sounds like a good deal... Wrong..

I tried to qualify with their preferred lender who wanted to charge in my opinion an excessive amount of points on the front end. I contacted a local Mortgage broker who found a better rate with a lender who specialized in Construction to Permanent loans with no points charged upfront. One of the conditions of the loan was Collins Builders had to make application for approval... This to me seemed very reasonable, especially since Collins Builder is fairly new to the New Home Construction business.

It seems fair for the lender to request financial statement from the builder since they were going to invest a substantial amount of money in the loan. I received a call from my Mortgage Broker that Collins was unwilling to submit the required information to the lender, my broker questioned as to why and was told they preferred to use there approved lenders. My broker stated he was an approved broker for two of the three lenders Collins preferred to use and asked the sales manager if he could broker the deal in that direction. My broker then advised me that he was advised if he did they would not pay any of the closing cost.

I became very concerned at this business practice, read the contract in great detail. No where in the contract did it say I have to use there lenders or did it say I could not use a broker to obtain a better rate. When I questioned the CEO Ashley Collins in regard to, why they would not pay my closing cost when I used their preferred lender through a broker, I was simply trying to get some clarity in regards to this business practice, they cancelled our contract, stating there was a trust issue.

Collins Builders advertises on their web site they do not have a "business relationship" with their preferred lenders. I find this hard to believe especially after the facts presented themselves.

Here are the facts, to use their lender:
1. I would be charged higher points on the front end. I believe to cover closing cost.
2. I would be charged a higher interest rate.
3. Collins Builders unwillingness to negotiate with a Construction to permanent lender.
4. Collins Builders unwillingness to negotiate with a private broker on their preferred lender program.
5. Collins Builders unwilling to pay closing cost for using a private mortgage broker.
6. When confronted Collins Builders cancels my contract.

Bottom line: Consumer beware of business relationships between the builder and approved lenders. One way or anther you will be charged higher points to cover the closing costs or the builder to receive "Kickback"...
If you use a private broker you will incur no points upfront. And the broker is capped on his service charge.

Do not fall victim to this unscrupulous business practice

Company: Collins Builders
Country: USA
State: Florida
City: Jacksonville
Address: 3840 Crown Point Rd., Suite C, Jacksonville, FL 32257
Phone: 9047573658

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