when buying a new house its better to take my agent or use the builders mortgage lender .and why?

Answer 1

Take your agent by all means, the builder cannot control your right to independent representation. The builder may however prefer a few addendum's of their design to be included into the purchase agreement. As for lenders most builders prefer their lender as that lender has financing designed for the project. Some loan programs or lenders can be unable to close timely when using an outside source for purchase funding. Make sure the loan you seek is a proper fit for the property. Still I would compare rates that are offered and use the lender you feel is best. By trying to keep the builders lenders pipeline filled, the builder will get better terms for himself on his next project. This isn't an uncommon builder practice at all, but as the buyer it is your purchase and resulting end payment that is your right to choose as you see fit.

Answer 2

Tianaramal may be an appraiser but his answer isn't the best...

Any lender giving kickback's is illegal. Does it happen? Yes. But no agent I know would be a part of something like that.

See who gives you the better rate, AND also look on your own.

Also, here's a tip - in today's buyers' market, homebuilders are trying to dump inventory, which means they are slashing prices AND giving financial incentives (e.g. interest rate reductions, buy downs, credit towards closing costs) to use THEIR lenders. With deals like this many lenders will have a tough time competing with the builder's lender.

It's a simple rule of supply and demand. Many builders have an oversupply of inventory, and to keep demand up, they need to "wheel-and-deal."

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Responding to Mortgage Help's Reply:
As a mortgage loan officer, I've found the par rates of most builders' lenders to be competitive. However, even if the borrower did have to sacrifice some on the rate to get a new construction house, he may still come out ahead because of the deal he'd probably get on the sales price.

Eg, if the sales price is 300k with a 90% LTV at 6%, the p&i is $1618/mo. If the borrower got the sp down to $280k w/ a 90% ltv and the best rate offered was 6.25%, he'd still be saving $67/mo, even with the higher rate.

It's easy to get hung up on the rate that sometimes we forget to look at the bigger picture. I'd pay a little more in rate if I was able to get a new house and more than make up for it on the sales price.

Regarding title fees, I can't speak for title fees in your state, but in PA where I was a loan officer and now an agent, title fees are state regulated.

Answer 3

By all means see what the builder's lender can do, but I would also go to an independent mortgage broker to see what they can find.

This was probably the best decision I ever made. My independent mortgage broker found me a fantastic deal involving some first-time homeowner programs offered by my home state. The loans were at below market rates for fixed 30 year loans. The lenders themselves, including online lenders, made no such effort.

My real estate agent was the one who referred me to the mortgage broker. Did she get a kick back, yes probably. So what. The mortgage broker really came through for me and I've steered other people to her when they wanted refinancing or looked for mortgages.

Answer 4

Builder will probably offer a great savings on the home for going with their lender. It's a legal form of bribery/blackmail. Their lender in turn will charge outrageous rate and fees. They will probably have a Title company as well they require, and they too will rip you off.

Answer 5

I would use an agent or loan officer ( like me).
My experience is the home builder loans are higher but you could find a good one.
You should shop the loan around, find the best deal. The truth is that most of the loan brokers get about the same rates for you, then it comes down to who you like, get along with and trust.
you are welcome to e-mail me with more questions
Charles C
Loan Consultant
Higher Ground Financial Services
[e-mail]

Answer 6

see what deal your lender's mortgage services are providing to you , if they are providing a rate of the higher fives and lower sixes then go for that .....those are the best rates that i could have provided to you for the present scenario
write to [e-mail] for details
the best option is 80-20 arm with 30 years payback and then rates like that as i said

regards,
kish

Answer 7

Always find your own lender. We recommend United Home Funding among others.

Answer 8

Take your agent they have a fiduciary duty of utmost care, intergrity, honesty and loyalty toward you. The builders people will look out for their client, the builders. You should have your own rep.

Answer 9

I would stay away from both. The agents lender gives kickbacks for referals and so would the builders lender as well. I would seek out my own lender.