The home search can be a long and tedious process full of detailed questions and large decisions. If you’re looking into buying a new home from a new construction home builder, you’ll find they are often partner with a preferred lender (or lenders) who are well-qualified to help you with your home loan. Check out these advantages of working with a home builder’s preferred lender.
Using a Builder’s Preferred Lender Can Improve Home Buyer Outcomes
The Relationship with the Builder
The relationship between the builder and the preferred lender is one of the largest advantages. Preferred lenders often sit on weekly calls with the builder to go over every single client’s building and loan progress. Keeping tight communication with the builder allows the lender to hear what’s going right and hear what obstacles the builder may be facing in regards to customer close date, and other delays of schedule. Additionally, this communication allows the lender to communicate to the buyer about hard deadlines for turning in documentation and giving the buyer time to repair credit score if needed.
This relationship between the builder and the lender truly smooths out the home buying process for the buyer as they have multiple points of contact for their questions. Outside lenders may be nervous to deliver bad news to the buyer if they don’t have a strong relationship with both the buyer and the builder.
When you establish this strong relationship with the lender, you’re likely to feel comfortable checking in with the lender the next time you’re considering refinancing or selling your home. Since they know your situation, they’ll be sure to present you with the best options for your situation.
Familiarity of the Community
The home builder’s preferred lender will already have a significant amount of information about the new home community since they’ve probably already worked with multiple buyers in the same community. They will know the ins and outs of HOA policies typically more than an outside lender. The lenders usually have appraisers that are also already familiar with the area, familiar with the community specific contract and have underwriters in house that will make the process go more smoothly.
Often buyers who choose to work with a home builder’s preferred lender receive incentives in the form of lender credits or builder credits toward closing costs. This can represent a significant amount of closing costs that you don’t have to pay. Sometimes builders will attribute the incentive money toward your selections in the design center. Either way, this money covers a portion of money that you can save for other expenses.
The builder will tell you home buying information based on if you are to choose to work with the preferred lender. The processes and procedures of the home buying process are based on the timelines and documents used to work with the preferred lenders. If using an outside mortgage lender, there’s a great potential you may run into bumps in the road or end up with a slower timeline, since the lender and the builder may not have the experience of working together in the past.
We work with several new home builders in western Washington as a preferred lender and we would love to help you get through the home buying process. If we can answer questions or help you get more information about new home builders in the greater Puget Sound region, feel free to ask.
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