We went through something similar when we built our home last year. Initially, the builder's lender seemed convenient, but when I dug deeper into the fine print, the rates and fees were higher than expected. Ended up shopping around and found a local credit union offering significantly better terms. Sure, it took a bit more legwork, but considering the long-term savings, I'd say it's a no-brainer to at least explore your options...
Good points raised here, especially about the long-term savings. But I'd just add that sometimes lenders specializing in green construction offer incentives or rebates that regular credit unions might miss...might be worth checking into those specialized options too before deciding.
That's a solid point about specialized green lenders. I've seen a couple of projects where clients tapped into those incentives, and the difference was pretty noticeable—especially with things like solar installations or energy-efficient windows. But I'd also suggest double-checking the fine print. Sometimes those specialized lenders have stricter criteria or specific requirements that can complicate the process a bit. Still, definitely worth exploring before settling on the builder's default lender.
Good call on checking the fine print—I've seen a few deals almost fall through because the client missed some obscure requirement in the green lender's terms. That said, once you get past the hoops, the savings can be substantial. I recently worked on a development where the homeowners got lower rates for installing geothermal heating systems. Took some extra paperwork and patience, but they ended up pretty happy with the outcome. Definitely worth the legwork if you have the time and patience.
"Took some extra paperwork and patience, but they ended up pretty happy with the outcome."
That's been my experience too. Green lenders often have stricter criteria, but the long-term savings usually outweigh the initial hassle. Just make sure your builder's lender isn't hiding any early payoff penalties...seen that happen before.
