Selecting Your New Home Lender

Post by Tod on June 17, 2010 | Read the First Comment

The Builders Preferred Lender

When purchasing a New Home the home builder will recommend a lender, which is typically called a preferred lender. There are many reasons your home builder will have a preferred lender. The most important reason is that they want to recommend someone reliable. Financing of your new home can be detailed at times and it’s important that the lender be able to communicate the process so that you can understand.  For most people, their home is the biggest investment they will ever make. Reliability is important to you so that you don’t end up with a bad experience.  Deciding to purchase a New Home in Southern California can be a very rewarding experience for your family.

Creates Smooth Home Buying Transaction

As the home builder and preferred lender work together more often, the procedure and communication process can become more streamlined, which in turn allows the home buying transaction to be smooth.  This really helps so your new home will close escrow with no surprises. When buying a new home, dealing with the builder’s preferred lender is very important. This is because there are a lot of moving parts involved in new homes that do not exist when buying resale. If you “shop” around to find your own lender, you may end up with someone who quotes a great rate and is great with refinances or resales, but has no experience with new homes. This can lead to problems, delays or even worse, not closing your escrow.

Ask Questions & Do Your Homework

Never automatically disqualify a home builders preferred lender, but be sure to ask all your questions and be educated on the interest rates of the market.  Start right now by reviewing New Home Specials in Southern California.