Just purchased new construction home. Seller was supposed to pay 2% of purchase price towards my closing cost. The settlemen

It's likely a "wash". This is a typical arrangement with builders where they require you to use their preferred lender to obtain any help with closing costs. Your rate is typically a little higher, but that is used at least partially to offset funds paid toward your closing costs. If you already closed there isn't much you can do about it now. Enjoy your new home and keep an eye on rates to see if refinancing might make sense at some point. My guess is that is unlikely - but you never know..

You make a good point. If the contract states that the SELLER will pay 2% towards your closing costs that is different than the LENDER giving you a credit. You would have likely received a lower interest rate without the lender credit. I would approch the loan officer and possibly their manager to determine how this should be rectified.

Lender credit and seller paid closing costs are two completely different items. Lender credits are obtained by slightly increasing your interest rate to offset some or all of your closing costs. This deal does not pass the smell test. This is also why I highly encourage people to understand the phony credit that builders supposedly give you if you use their preferred company. No one is giving you anything, and you pay for it somewhere.

If you elect to question the lender/builder on this please post updates on your progress here. It will be interesting to hear what they will tell you and I expect you can get some ongoing advice from all of us. Good luck!

I would read your documentation, sales contract, etc.. very closely, and be sure the credit was supposed to come from the seller.. because of the agreements that most builders have with their "Preferred" lenders, they will often times state if you don't use their lender they wont give you a credit.. which is very different from the credit actually coming from the seller.. read your documentation closely, and if the credit was supposed to come form the seller, then you have recourse.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com