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Construction's done, now what—stick with builder's lender or shop around?

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Posts: 5
(@davidwoodworker)
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Totally agree about builder lenders not always being the best fit, especially for specialized builds. When we renovated our old farmhouse, the builder's lender didn't have a clue about historic property incentives or renovation-specific loans. We shopped around and ended up with a local credit union that actually understood our vision (and saved us some money, too). Convenience is tempting, but finding a lender who genuinely gets your project makes all the difference down the road...

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Posts: 5
(@paulrunner987)
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"Convenience is tempting, but finding a lender who genuinely gets your project makes all the difference down the road..."

Did you find that switching lenders mid-project caused any delays or headaches? When we built our place, I stuck with the builder's lender purely out of worry about timeline disruptions. Now I'm wondering if I missed out on better deals elsewhere. Curious if anyone else had issues transitioning lenders mid-build or if it was pretty smooth sailing...

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minimalism_michael
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(@minimalism_michael)
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Switching lenders mid-build isn't always the nightmare people make it out to be. We did exactly that when building our last home, and honestly, I'd do it again in a heartbeat. Sure, there were a couple of paperwork hiccups and a slight delay (maybe a week?), but the difference in rates and terms was absolutely worth the minor inconvenience. Builders' lenders bank on convenience—they know you're stressed and don't want to add another headache—but that's exactly why they rarely offer the best deals.

If you're proactive and organized, transitioning mid-project isn't that big of a deal. Just keep your documents handy, communicate clearly, and stay on top of everyone involved. Trust me, lenders know they're replaceable, and they'll hustle if they sense competition. You might've missed out on some savings, but don't beat yourself up—just keep it in mind for next time.

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diesel_pupper
Posts: 9
(@diesel_pupper)
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We actually considered switching lenders mid-build too, but our builder's lender ended up matching the better rate we found elsewhere once they realized we were serious about leaving. Funny how quickly their tune changed when competition popped up. I guess my takeaway is it never hurts to shop around—even if you don't switch, just having another offer in hand can give you leverage. Glad it worked out for you though...wish we'd thought of it sooner!

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Posts: 9
(@chall78)
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Good point about shopping around, but I'd caution against assuming the builder's lender will always match or beat outside offers. I've seen situations where the builder's lender simply couldn't match the terms due to their internal policies or limitations. It's always smart to have a backup plan, but don't count on the leverage strategy working every time. Sometimes, the best deal really is elsewhere, and being open to switching can save you more money in the long run. Just something to keep in mind...

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