Casa Realty Group LLC

Pulte Mortgage Review: Get Access to Special Financing If You Use the Builder’s Lender

October 25, 2023

One of the nation’s largest home builders, PulteGroup, also operates its own financing division called “Pulte Mortgage.”

This is a common setup employed by large builders that look to control the process from start to completion.

It allows them to streamline operations and move their homes in a timely fashion, without relying on third parties that might cause delays.

Their “one-stop shopping” experience allows them to work hand-in-hand with the builder to coordinate the processing of your loan with the construction of your new home.

Read on to learn more about their lending process, rates and fees, loan programs, and customer reviews.

Pulte Mortgage Fast Facts

  • Captive mortgage lender for the PulteGroup
  • Offers home purchase loans for its new home buyer clients
  • Founded in 1972, headquartered in Englewood, Colorado
  • Parent company is third largest home builder in the country
  • Publicly traded company (NYSE:PHM)
  • Funded over $7 billion in home loans last year
  • Licensed to do business in 28 states
  • Most active in Arizona, California, Florida, North Carolina, and Texas
  • Also operates a title insurance and homeowners insurance agency
  • Company hours are Monday – Friday: 7:00 am – 6:00 pm MT

Pulte Mortgage is the home lending division of its parent company PulteGroup, a top-3 home builder in the United States. Only Lennar and D.R. Horton are bigger than them.

The home builder’s roots stretch back to 1950 when then 18-year-old William “Bill” Pulte built a five-room bungalow near Detroit, Michigan. The company later went public two decades later.

Some of the company’s home building brands include American West, Centex, Del Webb, DiVosta Homes, John Wieland Homes, Neighborhoods, and of course Pulte Homes.

Pulte Mortgage has been in operation since 1972 and is headquartered in Englewood, Colorado. It has apparently helped more than 700,000 customers since opening its doors.

They offer home purchase financing to buyers of new homes throughout the country where they are licensed, 28 states at last glance.

Last year, the company funded about $7 billion in home loans, and were most active in Florida and Texas, with each state accounting for roughly 20% of overall volume.

Like other major home builders, they also have their own title insurance company, PGP Title, and insurance company, Pulte Insurance Agency.

How to Get Started

First you must register for an account on the Pulte Mortgage website. Then you can access the electronic loan application.

They say they offer a high-touch digital mortgage experience, meaning a mix of the latest technology combined with a human lending team

Once you complete the digital mortgage app, you will be assigned a loan number and provided with access to your own personalized Loan Dashboard.

Any required documentation can be uploaded via smartphone/computer or securely linked to your application.

At this point, a designated loan team will be assigned, including a loan officer, loan processor, mortgage underwriter, and closer.

Pulte Mortgage prides itself on knowing its parent company’s processes and timelines better than anyone.

This means you should be in good hands when it comes to closing on time and avoiding any costly delays.

If and when you have questions, you can reach out to your loan team. You can also check loan status 24/7 to see where you’re at in the process.

They appear to make it easy to complete most tasks electronically/remotely, and their affiliated title and insurance agency may help streamline the process.

Just be sure to shop around for those services as well as the price and service can vary.

Loan Programs Offered by Pulte

  • Home purchase loans
  • Conforming loans backed by Fannie Mae or Freddie Mac
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate and adjustable-rate options available

Pulte Mortgage says they have more than 200 different loan options. I’m not sure what those are, but they appear to offer all the basics you would expect from a full-service mortgage lender.

This includes conforming loans, jumbo loans, and government-backed loans, including FHA, USDA, and VA loans.

Both fixed-rate loans and adjustable-rate mortgages are available, including the 5/1 ARM, 7/1 ARM, and the 30-year fixed.

What they might offer that the other guys can’t is big mortgage rate buydowns if you use them and their parent company to buy/build a home.

Lately, builder’s financing divisions have been advertising mortgage rates that are 2% or more below prevailing market rates.

They only appear to offer home purchase loans (no mortgage refinances), which makes sense because they are a home builder.

With regard to property type, they provide financing on single-family homes, condos, townhomes, and anything else they develop.

All occupancy types should be permitted, assuming you’re buying a second home or investment property.

Pulte Mortgage Rates and Lender Fees

Unfortunately, they do not provide any information regarding their mortgage rates or lender fees on their website.

This isn’t uncommon, but I do give lenders transparency points when they provide these details online.

As mentioned, the only thing they do advertise is big mortgage rate buydowns on their website if you use them to buy a PulteGroup home.

It’s unclear what lender fees, if any, they charge. But be sure to look at the big picture, the mortgage APR, which incorporates the interest rate and fees.

And take the time to compare their offer to other unaffiliated lenders. It’s perfectly acceptable to buy a newly built home using a third-party bank, lender, or even mortgage broker.

Even if you plan on using them, it might not hurt to get additional quotes to increase your bargaining power.

Pulte Mortgage Reviews

On Zillow, Pulte Mortgage has an excellent 4.74/5-star rating from over 350 customer reviews.

But there are some mixed reviews if you take the time to read them, with some calling them pushy, incompetent, etc.

Perhaps more concerning is they have a 1.13/5 rating on the Better Business Bureau (BBB) from nearly 200 customer reviews. And more than 200 complaints over the past 12 months.

They also have an ‘NR’ rating, which could indicate there is an ongoing review/update of the business’s file on the BBB website.

Their headquarters also has a 2.4/5 Yelp rating from about 165 reviews, though they’ve got a 4.9/5 on Facebook from 1,100+ “votes.”

So a bit of a mixed bag here, which might require some reading of reviews to see what some of the issues have been.

Remember, at the end of the day you DO NOT need to use the home builder’s mortgage lender to purchase a newly-built home.

It’s always wise to shop around and get multiple quotes, including ones from the builder and unrelated banks/lenders.

That way you can compare offers, and if need be, negotiate with the builder’s lender with increased leverage.

You don’t want any one lender to think you don’t have options, so gathering multiple quotes might give you a leg up.

It may also open your eyes to better options/offers you weren’t previously aware of. This is the case whether buying a new home or an existing home.

Long story short, put in the time or you may face disappointment when it’s too late in the process to switch lenders.

Pulte Mortgage Pros and Cons

The Good Stuff

  • Can apply for a home loan online via digital application
  • Paperless options like document upload and bank account verification
  • They offer big mortgage rate buydowns to their home buyer customers
  • Offer a streamlined process with their own title/insurance companies
  • Plenty of loan options to satisfy most home buyer’s needs
  • Free mortgage calculator, glossary, and home buyer guides online

The Maybe Not

  • Not licensed in all states
  • Only offer home purchase loans
  • Mixed customer reviews and high number of complaints
  • No BBB rating at the moment
  • Do not service loans after closing

Source link

Posted in Real Estate
Write a comment