When buying a new construction home, don’t let the builder’s agent automatically talk you into letting them represent you and using their lender.
There are a couple important things you should know about new home construction and the lending process that goes with it.
The agents who represent the builders don’t represent you. If you were to use them, you wouldn’t have anybody looking out for your best interest. This stipulation is actually stated in their contract.
"Don’t just walk into a pretty sales office without representation."
The builder’s agent also would prefer you to use the builder’s lender, but you still have a choice, and you still deserve a choice. It’s no different than if you were working with a normal seller—just make sure you’re looking for financing options that suit your needs.
Understand that the builder’s agent will make the builder’s lender very appealing. They’ll give you credits and make it look like they’re throwing money at you. They also might scare you into thinking you might not close on time and that it will cost you more not to use them.
You need to double-check, though, to verify that the fees you’re being charged relate to what you should actually pay and you’re not getting “credits” that only cover the added fees being charged by the builder. Talk to your own lender, compare apples to apples with them, and make sure you do your due diligence.
If you have any questions about new home construction or you want to talk more about new home financing, don’t hesitate to reach out to us. We’d be happy to speak with you.
