Top Advantages of Working With Your Builder’s Preferred Lenders
If you are planning to buy a new home, you will soon be considering how to finance your purchase. At this stage, it becomes essential that you find a suitable lending institution so that you can obtain a mortgage loan. The best way to make this part of the buying process smooth and efficient is to work with one of your builder’s preferred lenders.
What is a Preferred Lender?
A preferred lender is a financial institution that already has an established relationship with your builder. This is a bank or mortgage company that works with people like you who are buying homes from a specific company. For example, if you are shopping for new construction homes in Utah and you choose the state’s premier builder — McArthur Homes — they would refer you to a select list of the company’s expert lenders. Taking this approach to buying a home offers a distinct set of advantages like saving time and money so that you can focus on moving into your new house as soon as possible.
Work With Top Rated Professionals
Securing home mortgage financing through a preferred lender allows you to access relationships which have already been established and maintained by your builder’s sales team. This type of lender has already been screened, scrutinized and vetted by the company owners, managers and executives. They are, in effect, pre-qualified to work with you because your builder has taken the time to make sure that they operate with professionalism and integrity. Plus, the people at this institution will already have a rapport with your builder’s sales team which will facilitate effective communication.
Receive Exceptional Service
A preferred lender has a vested interest in maintaining a working relationship with your builder for future business. This is why you can expect timely responses to important questions as they arise throughout the lending process. Also, a preferred lender is more likely to make exceptions to normal working schedules and go out of their way to meet you after hours or even on a weekend in order to complete important paperwork. This type of working relationship can ensure you are not left on hold, made to wait for responses or worse yet, ignored by an indifferent banking staff.
Working With a Builder’s Preferred Lenders Will Save You Time
A preferred lender who has worked with your builder and knows the details of their process can ensure a timely closing. The people at this institution will already be familiar with the specific types of documentation, modes of communication and the professional style of this builder. They will know what sort of paperwork to expect and how to contact the right person if they have questions about a specific matter. Having worked with your builder before, they will also be familiar with the construction schedules as well as the names and prices of specific home models. As construction nears completion and the closing date is set, the lender can avoid delays by knowing exactly which pieces of paperwork to have ready for you at the right time. A lender who is not familiar with a certain builder can miss important details in the finishing stages — which can definitely slow down the closing process.
You Can Save Money by Working With Builder’s Preferred Lenders
A preferred lender is far more likely to offer you the lowest interest rates available and to extend or “lock in” those terms for you for a longer period of time. Plus, this type of a relationship between a builder and a lender could give you access to even lower rates in some circumstances. For example, if the interest rates have gone down between when you applied for a loan and when it is time to close, the preferred lender — in the interest of cultivating an ongoing relationship with your builder — could choose to offer you the new, lower rates for your home mortgage.
Dedicated to Serving New Home Buyers
The financing stage of buying a home can be tricky, that’s why it is a great idea to work with your builder’s preferred lenders. You can see a list of all of McArthur Homes preferred lenders here. If you have any additional questions, you can contact us online or give us a call to learn more about newly-built homes which are ready for buyers who have found the right financial institution.
Categorized in: Home Building Process, New Homes, Why Own
This post was written by Paige Giles