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Yep. Thats true. I did speak with their Sales Director & of course, they would not refund any such cost. They say that it is a cost that their lender incurs and has to be paid by the buyer. They also gave the lame reason that "Whoever comes to our lender, does not want to go anywhere else". Of course, I regard that as just a marketing pitch and nothing else. So, from where I stand right now, it appears as I will end up losing those $350/- application fee & will have to live with an extra credit check against me.

The reason is what was stated by Catherine before, capitalism. It is the seller's market right now. The reason why I am not walking away from this place (inspite of the builder being so hard) is firstly, we have been looking for more than 5 months now (very aggressively) and till now did not find anything as reasonable as this. Secondly, this was the last house in the current phase of the community & the new phase has already been 75% sold out. The same model (that I hv bought)in the new phase is already going for 7% more than what I would pay.

I hv looked outside, all builders selling new constructions have very strict contracts & they don't budge from that by much. Thats what my lawyer also told me. So, yeah... I do know the builder is not being flexible. Thats because, he knows he is in the driver's seat with the current state of the market.

About the 0% credit card offer I had mentioned. Yes, it is not directly linked to this thread. But, indirectly it is. I'll explain how.

I have a certain amount on a 0% credit card which expires in Aug'02. I recently got another offer for a 0% which expires in July '03. I would not like to be in a situation when come August, the current 0% card becomes 15% & I have to start paying interest on that. I also do not want that I pay of the amount on the credit card ( I have that much savings ) since this amount I have reserved for the down payment on the house. ( So that I can make 20% down to save PMI). Keeping this in mind, the other option is I make use of this new 0% offer that expires in July '03. That would give me 1 year of interest free time in which I can clear off the balance on the credit card. How all this relates to the house purchase - Would it impact my home mortgage application's approval if I apply for a new credit card ?????

Because if it will, then I will wait till my home mortgage application goes through... thats all.

I hope you understand my situation now.

thanks for all your responses.
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