We're just wrapping up our house build (finally!) and now looking into mortgages. The builder's lender has been pretty smooth so far and they're offering a decent rate, plus some perks like covering closing costs. But part of me wonders if it's smarter to shop around independently to see if we can snag an even better deal. Has anyone faced this choice before? Curious if the convenience outweighs potential savings or vice versa...
"But part of me wonders if it's smarter to shop around independently to see if we can snag an even better deal."
I completely understand your hesitation here. When we finished our custom build last year, we faced the exact same dilemma. Our builder's lender was convenient and offered some appealing perks, similar to yours—covering closing costs and all that. But we decided to shop around anyway, just to be thorough.
Honestly, it was worth the extra effort. We found a slightly better rate elsewhere, and even though the difference wasn't huge, over the life of the mortgage it adds up quite a bit. That said, convenience does matter—especially after the stress of building a home from scratch. If your builder's lender is already offering competitive terms and you're feeling good about the process so far, there's nothing wrong with sticking with them.
Either way, congrats on finishing your build. It's a huge milestone, and you're almost there...
I get why shopping around seems like the smart move, but honestly, sometimes the builder's lender really is the best option. When we closed on our new build a couple years back, we went through the same thought process—checked with our credit union, a local bank, and even an online lender just to be sure. Funny thing is, after all that legwork, we ended up right back with the builder's lender anyway.
Here's the thing: those incentives they offer (like covering closing costs or throwing in upgrades) can be pretty substantial. Even if you find a slightly lower interest rate elsewhere, it might not offset the value of those perks—at least not for several years. Plus, there's something to be said for convenience and peace of mind. After months of construction delays, picking finishes, and dealing with contractors, the last thing we wanted was more hassle at the finish line.
"Honestly, it was worth the extra effort. We found a slightly better rate elsewhere, and even though the difference wasn't huge, over the life of the mortgage it adds up quite a bit."
That's true, but it's also worth considering how long you'll realistically stay in the home. If you're planning to move or refinance within 5-7 years (which many people do), the long-term savings from a slightly lower rate might not even materialize. We ran the numbers and realized we'd have to stay put for nearly a decade before breaking even on the savings from a lower rate elsewhere.
Not saying you shouldn't shop around—definitely do your homework—but don't automatically assume the builder's lender isn't competitive. Sometimes the easiest choice really is the smartest one. Congrats on finishing your build, by the way...it's a huge relief once you're finally settled in.
We went through something similar last year—checked everywhere, crunched numbers, and still ended up with the builder's lender. Those incentives really tipped the scales for us. Plus, after all that building stress, convenience felt priceless...congrats on finally getting settled!
We were in your shoes a couple years back—builder's lender had decent incentives, but I couldn't shake the feeling we might be missing out. Ended up talking to a local credit union just out of curiosity, and they actually beat the builder's rate by a small margin. It wasn't a massive difference, but enough for us to switch. Convenience is nice, but it never hurts to double-check what's out there before signing on the dotted line.
