Are There Lender Options for New Home Construction?

When buying a new home there is a lot to think about. What area do you want to live in? What schools are important to you for your children? Do you have a realtor? All of these questions get answered as you begin your new home search. However, once you find that new home and it is new construction, the question arises: Do I have to purchase through the builder’s lender? Home builders do offer in house lending. You are usually given a list of lenders whom the builder recommends to use. But are these a good deal? One incentive to using their suggested lender is convenience. It is a one stop shop per say. Because the affiliated lender is intimately familiar with the builder, the two companies can share information which can help to speed up the lending process. Some builders offer substantial incentives from reducing the price of the home to upgrading appliances. However, while builders offer these incentives, they are required by federal law to allow homebuyers to obtain their mortgage from any company they choose. They may be able to insist you seek mortgage pre-approval from one of their affiliates as a type of credit check, but they cannot compel you to borrow money from these lenders. So with that being said, yes you are free to shop around and choose your own lender. According to the National Association of Mortgage Brokers (NAMB), affiliated lenders tend to offer interest rates one-eighth to one-quarter percent higher than what consumers could get from an independent lender. Therefore it would be a good idea to check out different companies just to be sure you are getting the best interest rate. You can also experience less options on the type of mortgage that best fits your needs. There is enormous variety in the types of mortgages available today. Not only can homebuyers choose between a fixed-rate or adjustable-rate loan and select their term and payment options, but they can also explore a number of non-traditional mortgages designed for people with specific needs. A builder's shortlist of partner lenders is unlikely to match the array of mortgages you'll find if you search for your loan independently. Just as you make a careful search for the right house, it's worth taking the time to shop around for the best mortgage. Look at what the builder is offering, but compare it with quotes from at least three outside lenders. By considering all of your options, you'll be able to arrange financing that best suits your needs. Contact Texas Premier Mortgage

today to speak to highly qualified lenders who can work hard to get you the lowest interest rate, and guide you each step of the way for the purchase of your new home.