Why Use A Builder's Preferred Lender | Holiday Builders
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You’ve decided to build a home with Holiday Builders and your New Home Consultant has told you about obtaining financing with one of our preferred lenders. Your co-worker has told you about their lender or you’ve heard some advertising touting great rates with an online company like Rocket Mortgage or Quicken Loans. Why should you use a builder’s preferred lender?

Obtaining financing can be a tedious process. Customers must provide documentation of income, monies owed for car payments or other loans, tax documents, proof of employment and more. Let’s assume you’re very organized and you’ve got all the documentation ready to submit for your loan application.  As wonderful as that is, the process is just beginning. You want to work with a lender you can count on to help you get to closing.

Communication and Availablity

Holiday Builders has three preferred lending partners: Shelter Mortgage, FBC Mortgage and University Lending Group. Their number one goal is to make sure they are always available to Holiday Builder’s customers with open communication and transparency. Furthermore, the three lending companies work together to help a customer obtain a mortgage. If Shelter can’t secure a mortgage for some reason, maybe FBC or University Lending Group can. Have you ever had difficulty reaching a human being when you’ve made an online purchase? It can be very frustrating when you need to resolve an issue. Can you imagine if you can’t reach the company you’ve requested finance your largest purchase? Communication is key. For more information on our lenders, including phone numbers, websites and email addresses, visit our website. 


Preferred lenders are required to obtain conditional approval for a customer’s loan within two weeks of contract signing. An outside lender has no incentive to meet a builder’s timeline. It is beneficial to use a lender who has a working relationship with your builder.

Saving Money

Holiday Builders will pay $4,000 in closing costs when one of their preferred lenders is used. Furthermore, the lender adds 1% of the purchase price toward closing. When a customer uses an outside lender, Holiday Builders does not give the $4,000 credit. The credit is good only for closing costs. That’s $4,000 of the customer’s money they can keep or spend on something in their home.

New Home Construction vs Resale Homes

Financing for a resale, or used home, is different than financing a home you’re building. Our preferred lenders are experts in financing new home construction. Too often, an outside lender that runs an application through a traditional portal may miss fees relative to building, or add fees not relative to building. This creates surprises and confusion as everything has to be adjusted to suit new home construction financing.

Credit Enhancement

Although lenders are not financial advisors, they can assist buyers with credit clean up and advice to carry the buyer through the loan process without a hitch. For example, they’ll remind you NOT to open any new lines of credit between the time you apply for a loan and your closing. This could be as innocuous as a department store credit card. They’ll advise you NOT to stop paying your credit card payment. Once you apply for a loan, you want to keep all of your finances consistent with the documentation you submitted. A loss or drop in income can kill a loan, or adjust the amount for which you qualify. Our preferred lenders work with you toward credit enhancement so you can get the best loan for you, and close on time.

For a true story of one customer's financing journey using one of our preferred lenders, click here. 

Variety of Loan Products

What kind of financing is best for you? A conventional loan, VA loan or FHA loan? How much money do you want to put down as a deposit? The historical rule of 20% no longer holds true. With interest rates so low, many buyers prefer to keep their cash. Our preferred lenders are knowledgeable in all loan products. 

A Relationship Business

The benefits of using a preferred lender are more than just financial. The relationship between the lender and the customer, the lender and the builder and the lender and the title company are all important. An unresponsive lender causes extreme stress and can delay closings. When the commitment to get the buyer into the home is shared by all parties, the transaction is smoother all the way around.

There’s a clear difference between a lender that simply wants to finance your home, and a company that truly wants to get you into a home. Preferred lenders fall into the latter category. Because of the relationship with the builder, a preferred lender’s clear set of priorities is to assist the homebuyer to in achieving the dream of home ownership.