5,246,545
The incentives for using the inhouse lender are usually substatial. Sometimes they will cover closing costs and throw in an appliance package or upgrade allowance.
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Fred Griffin Florida R...
Tallahassee, FL
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Lyn Sims
Schaumburg, IL
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Nina Hollander, Broker
Charlotte, NC
5,583,328
the builder always wants the buyer to use his lender who has the construction loan.... it's comforting!!! makes the builder feel like he has some control.... can communicate directly with his mortgage person....
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Justin Arlequin
Orlando, FL
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Abby Stiller
Cape Coral, FL
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Lyn Sims
Schaumburg, IL
7,871,560
717,185
Typically a preferred lender in a new subdivision will offer (perceived) discounts to the buyer - but the buyer should always retain the right to research other options. What is good for one buyer may not be the best for another.
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Fred Griffin Florida R...
Tallahassee, FL
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JoAnn Moore
Georgetown, DE
914,198
Things go smoother for buyer when they use builders preferred lender. incentives/ discounts for buyers. Less chance of appraiser problems. Rate.
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Abby Stiller
Cape Coral, FL
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Lyn Sims
Schaumburg, IL
2,195,824
Improves Builder's Margin ?
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JoAnn Moore
Georgetown, DE
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Lyn Sims
Schaumburg, IL
1,525,616
Often the lender for a new construction home offers a lot of incentives. Other than that, I go with a lender that I know and trust!
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Jeff Pearl
Lovettsville, VA
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Nina Hollander, Broker
Charlotte, NC
2,684,769
Lynnea Miller and Wayne Martin both gave good answers. I love that term, "perceived discounts"!
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Jeff Pearl
Lovettsville, VA
3,590,566
Buyers will get incentives with their in-house lender. I'm not a fan of this practice but if it works better for buyers than so be it.
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Lyn Sims
Schaumburg, IL
5,117,178
The main advantage is the when a buyer uses an in-house or preferred lender for new construction, they usually get some discount on closing costs.
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Jeff Pearl
Lovettsville, VA
1,728,867
None, unless the lender is getting the rate bought down by the builder as Lennar usually does.
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Justin Arlequin
Orlando, FL
1,617,916
The new home builder gives more incentives using inhouse lender that outside lender cannot compete fairly in my opinion.
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Lyn Sims
Schaumburg, IL
1,712,876
One has to be careful especially if the builder is offering a deal on closing cost. Very often you pay higher rates.
766,969
Most new home builders in our area offer a large incentive if the buyer uses the in-house lender. These lenders are competitive and hard to beat out.
1,507,073
The buyer is never forced to use any particular lender, however there are often incentives in new construction.
1,466,257
Justin Arlequin Many builders give additional incentives for using their in-house lender. Buyers are free to use whomever they want.
788,831
It's all about incentives, but it's up the buyer who they want to use as a lender.
902,538
Buyers should always have a choice, but a local (not necessarily in-house) lender is preferred.
3,416,038
It is all about the money. I prefer local and trusted lenders over internet lenders or so called preferred lenders any day
3,071,589
4,907,547
991,852
921,504
The in-house lender has already 'pre-approved' the real estate and need only vet the buyers finances. The means an easier process.
Since the enterprise in raking in mountains of profit from the build and lending, they can be more generous in creating benefit that Wells Fargo just can't do.
Besides, when it comes to Wells Fargo I advise folks not to do business with or vote for criminals.
4,584,571
Typically there are incentives offered by the builder's preferred lender. Real estate is about negotiation and buyers can opt for their own lenders but may be "penalized" if in a competitive market.
4,434,177
1,157,791
It depends on the situation. Buyers are allowed to use whoever they want as a lender.
4,319,873
Justin Arlequin - makes it easy for communication, as one benefit I see.
Buyers are free to choose their lender, though.
3,744,645
If the builder's preferred lender doesn't offer the best deal, a good buyer's agent can usually negotiate allowing the buyers to use whichever lender they prefer.
3,988,013
It keeps cost down, expedites the sale and assures the builder that it is a real legitimate buyer. It is a comfort level for the builder.
3,350,764
Buyers ALWAYS have the choice to use any lender they want. Lender credits are generally bull-crap. I see it a lot. Rates are higher, they charge points and add a bunch of junk fees. No benefit to anyone other than the lender. my 2 cents.
5,035,096
Most lenders can't compete with the builders lender. The incentive to the buyer is usually $3,000-$5,000 in closing cost paid by the builders lender. When you go to closing keys are given to the buyer from the builders lender. If its another lender keys are not given until the lender funds (which can be an issue sometimes).
1,231,853
1,153,794
For the Builder, he can offer better terms, pay off his contruction loan sooner and sell more homes. Buyers have an opportunity to upgrade their purchase and pay a little less each month while doing so.
5,879,816
Builders have their own lenders, and they can offer paid closing costs to the buyers.
1,555,089
The incentive$$$ is the only reason to use in house...too good to pass up most of the time!
3,986,308
6,425,924
Sellers of all kinds feel more secure with a lender who is sure to get the job done.
4,800,132
There are big benefits to the lender and builder that can translate to some savings for the buyer.
5,063,430
The buyer may get fairly significant incentives from doing so. It's their choice.
1,847,781
There's a couple of reasons they want control over the buyer:
1) reputable lender that they've dealt with, no LendingTree on the computer stuff.
2) they roll it in making it seem the buyer is getting benefits when in actuality the builder is getting the bennies. I've never seen a builder have an over market rate so far. As far as customer service, that is very lacking.
3) Builder might buy down the rate making it even more rewarding & then throw in a free microwave!
2,785,606
In-house gets it done (if it breaths it buys) and has incentives to do so. They have partnered with the developer (skin in the game). Everyday that goes by in construction is another day of huge interest payments until loans close
823,679
Many of our builders get a preferred rate with their own lenders and pass it on to the buyers.