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Should you use a builder’s preferred lender?

07.11.17

There’s a good reason—several, actually—that homebuyers should consider their options when looking for the right lender to finance their new home. It’s not just about rates and closing costs. You need a lender who is going to guide you through the process, answer your questions, and give you the right guidance to ensure you get to closing on time, with no surprises.

That’s not a foregone conclusion with just any lender.

As you begin discussions with homebuilders, you’ll likely hear about their “preferred lender”. You might think, “well, it’s THEIR preference, but might not be mine.” Before you dismiss the offer, consider these reasons why you should use a builder’s preferred lender.

Timely closing. One of the biggest frustrations that homeowners experience is a delay in the closing. Often, it’s the result of an oversight on the lender’s part—documentation that wasn’t obtained. The result could be an increase in your mortgage rate if your lender hasn’t locked it in. A preferred lender is deeply experienced in the builder’s process and knows every step and every document required. They know whom to talk to at your builder’s company to streamline the process.

Responsiveness. If you don’t mind waiting until the bank opens in order to speak to someone about a problem, then you night not need a lender who takes your calls on a weeknight or weekend, who can get back to you with a prompt answer, and who appreciates that buying or building a home is not a common event for you, so you might have a lot of questions. A preferred lender does all these things.

Incentives. A lender isn’t just preferred by the builder. They’re trusted. They have a long-standing relationship. So, the builder allows this lender to offer closing incentives and special financing to a homebuyer that he might not accord to just any lender that hasn’t earned the level of trust.

Reliable appraisals. Have you ever tried to purchase a home that didn’t appraise for the value it should have? Preferred lenders work with professionals with a proven track record of providing a fair appraisal.

The mortgage approval and closing process can be cumbersome—even frustrating—if it’s not handled by a knowledgeable, motivated, and responsive professional. Every Epcon Community has local, preferred lenders who know the builder, the community, and the loan options. On the way to enjoying your more relaxed lifestyle in a low-maintenance home, you can also experience the more relaxed homebuying process.