Yeah, builder incentives can look good upfront, but I've seen friends regret jumping too quickly. Curious though—anyone here actually found the builder's lender to be the better deal after shopping around? Seems rare, but you never know...
I get the hesitation—builder lenders can be hit or miss. Did you check if their incentives offset any slightly higher rates or fees? Sometimes the math actually works out better, but yeah...definitely gotta crunch those numbers carefully.
Have you looked into how flexible the builder's lender is with closing timelines or contingencies? Sometimes they're more accommodating since they're tied directly to the builder, which can save headaches if something unexpected pops up at the last minute. On the flip side, I've seen situations where outside lenders offered better long-term servicing or refinancing options down the road. A friend of mine went with the builder's lender initially for convenience, but regretted it later when refinancing turned into a hassle. Did you factor in future flexibility or refinancing ease when comparing your options?
That's a really good point about refinancing down the line. I recently worked with a client who initially went with their builder's lender because it seemed simpler at the time. It did help smooth out some last-minute hiccups during closing, but when they wanted to refinance later, things got tricky. They found that the builder's lender wasn't as responsive or competitive when it came to refinancing rates and terms.
From what I've seen, it's definitely worth comparing outside lenders—not just for initial rates, but also for their long-term flexibility and customer service. Sometimes an outside lender can offer better refinancing options or even more personalized service down the road. If you haven't already, maybe consider asking both lenders directly about their refinancing processes and how flexible they are with future adjustments. It might give you a clearer picture of what you're getting into long-term...
Good advice overall, though I think it really depends on your priorities. I've seen people stick with the builder's lender because the convenience factor is huge—especially if you're juggling a million other things at closing. But I agree, it's not always the best long-term move.
One thing I'd add: I've noticed some outside lenders are also way better at offering incentives or special programs if you're looking into green building certifications or energy-efficient upgrades later on. A friend of mine recently refinanced through a smaller lender that specialized in green homes, and they got a pretty nice rate break just for having solar panels installed. Might be worth looking into if that's something you're considering down the line...
Either way, asking upfront about refinancing terms and flexibility is definitely smart. You don't wanna be stuck chasing down your original lender when you need them most.
