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Home Loans

How Do I Know If Builder Loans Are The Best Deal?
(presented by www.refinance-refinance.net - mortgage lenders)



By Ben Afzal

Basics

Builders usually have a leg up on their competition to provide you a mortgage for their newly built property.

Most builders require a borrower to be “pre-qualified” which is when a mortgage lender finds you qualified for the mortgage amount and rates you are looking for. The builder will often have a financial company of their own that will offer to do this for you.

It is convenient, but you are not required to use their lender to purchase the property. You are free to use any lender you wish.

Even if you are prequalified by the builder you may still work wtih other parties.

Incentives

Many lenders emphasize that their lending operation works smoothly with the builder to make sure the loan process works and things go smoothly.

This may be critical when a lender has the right to cancel your purchase if your loan documents do not arrive in time. This can and does happen, and buyers may lose out on buying a property they really like and they may have risen in value since they last purchased a property. This is one situation you do not want to happen to you.

Builders also offer financial incentives to use their lender. They can offer free upgrades, appliances, or other incentives.

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HOME LOANS ADVERTISEMENT

This may be a tempting offer for many buyers who want to stretch their dollars.

If you look at your purchase from a strictly financial sense you may want to compare several offers with the lenders offer.

Some lenderrs have a limited array of loans they can offer.

Outside lenders and brokers may have a much wider range of loans available to you. This may include minimum payment option loans.

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This entry was posted on Friday, October 13th, 2006 at 2:21 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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