Should you use the builder’s preferred lender when buying a new construction home?
Oftentimes, builders offer strong incentives for buyers to use their preferred lender. You’re not required to use that lender, though. The law states that you can choose whichever lender you want.
These incentives may have some strings attached (a higher interest rate, higher closing costs, etc.) that could cost you in the long run, but they’re still very beneficial if you take advantage of them. In many cases, they include a price break, lot premium, or closing cost credit. Sometimes other mortgage lenders can match these incentives; sometimes they can’t. In any case, it’s always good to shop around.
If you have questions about this or any other real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help.
