Why Use A Homebuilders’ Lending Partner
If you’re a prospective homebuyer shopping for a new construction home, there’s a strong likelihood that you’ve been urged to use the homebuilder’s “preferred lender”. But why? In the resale home market, your real estate agent might refer you to a lender, or you might be motivated to apply for a loan with a well-advertised lender. Whether you’re buying a new construction home or a resale home, the truth is that you’re not only shopping for a home, you’re also shopping for a lender. And in both cases, as a consumer, you are free to go with the lender of your choosing. So in a free market with plentiful lender options, what is the advantage of using a homebuilder’s preferred lender?
Holiday Builders has a lending partner, Coastal Loans. More accurately, Coastal Loans is a Joint Venture. Holiday Builders partnered with FBC Mortgage to create Coastal Loans.
Why did we form this Joint Venture? First of all, it’s good business. Coastal Loans exists to work for Holiday Builders’ customers. They aren’t generating loans for a condo in San Francisco or a beach home in the Hamptons. They are dedicated to Holiday Builders’ customer base. Their focus is helping a customer be successful in the purchase of a Holiday Builders’ home. When you work with Coastal Loans, you aren’t just a number – you’re a valued customer. You’ll work with a Loan Originator who will turn over every stone to help you get approved for a loan. Furthermore, Coastal Loans has a weekly call with Holiday Builders to review the status of every buyer so that everyone is on the same page. That makes a huge difference throughout the process, but especially as a home purchase gets close to closing.
Homebuilders offer incentives if you work with their lending partner. These incentives could include paid closing costs or lower-than-market finance rates for qualified buyers. Everyone has their personal finance considerations. For example, one buyer may have cash flow issues so an incentive like $10,000 in paid closing costs, is a huge asset. While another buyer may not have cash issues and closing costs aren’t an incentive. But it can’t hurt! Interest rates on mortgages are always a consideration and it’s no surprise. A 1% difference in interest rates can save thousands of dollars over the life of a loan, not to mention what it can do to a monthly payment. When purchasing a Holiday Builders’ home, you can use the lender of your choosing, but it is unlikely an outside lender will offer lowered interest rate programs. Interested in what Holiday Builders has as incentives right now? It’s pretty spectacular and worth the read – click here to check it out.
While we wish we could snap our fingers and make interest rates come down for everyone, we aren’t in charge. But the fact is, 1% in an interest rate can keep someone from affording a monthly mortgage payment. There are criteria to meet qualifications for a lower rate including loan types, your credit score, and more. However, an opportunity to take advantage of a low-rate finance offer could be the single element that makes or breaks one’s ability to become a homeowner.
Remember, you’re not just shopping for a new home. You’re shopping for a great lender – a company, made up of people, dedicated to helping you achieve one single goal – the purchase of a brand-new Holiday Builders’ home, complete with a warranty. Why use a homebuilders’ lending partner? In the end, it comes down to the builder/lender relationship which makes for a seamless transaction. Because there is constant communication between builder and lender, it’s easy to pivot if something needs adjusting. Outside lenders are not nearly as accessible. When it comes to home loans, relationships and timing are everything.
Tags: Finance Rates, Homebuilding, Incentives, Lending Partner, Preferred Lender
