That's interesting you mention communication issues—I had a similar experience. Initially, I thought sticking with the builder's lender would streamline things, but when I asked about specific loan details, responses were vague or delayed. Ended up going with a local bank that was super responsive and transparent. Makes me wonder, though...do you think builders intentionally partner with lenders who aren't as competitive because they assume buyers won't shop around? Or is it just a convenience thing on their end too? Curious if anyone else felt like the builder's lender was almost surprised when you started asking detailed questions about rates and terms.
Agree with you on the communication thing—seen it happen a lot. From my experience:
- Builders typically partner with lenders mostly for convenience and predictability in timelines. It's easier managing construction draws and closing schedules when there's an established relationship.
- That said, some builders do get referral incentives, so competitiveness isn't always the top priority.
- I've noticed builder lenders can sometimes get complacent because they assume buyers won't bother shopping around...until someone actually does. Then they scramble a bit.
- Always worth shopping around. Local banks or credit unions often have better terms and clearer communication because they're competing directly for your business.
Bottom line, builders aren't usually out to intentionally mislead, but convenience and familiarity often trump competitiveness. Good on you for doing the legwork and asking detailed questions—it's your money, after all.
Went through something similar when I built my place. Builder's lender was fine at first—smooth draws, predictable timelines—but when it came time to lock in the permanent loan, their rates weren't exactly competitive. Ended up checking with a local credit union and got a noticeably better deal. Definitely worth the extra effort to shop around...it's surprising how much you can save just by making a few calls.
"Definitely worth the extra effort to shop around...it's surprising how much you can save just by making a few calls."
Couldn't agree more. When I built my own place, I initially stuck with the builder's lender out of convenience—big mistake. After chatting with a few local banks, found a rate that saved me thousands in the long run. Honestly, building a home is all about creativity and customizing your vision; shouldn't financing your dream be just as tailored? Glad you took the leap and found a better deal.
Good points here, but I'd add a couple things from experience:
- Builder's lenders sometimes offer incentives upfront (closing cost credits, upgrades, etc.), so factor those into your math before jumping ship.
- Don't just look at interest rates—check fees, closing timelines, and customer service. A slightly lower rate isn't always worth the headache if the lender drags their feet.
- Local credit unions can be hidden gems...they're often flexible and responsive.
Bottom line, shopping around is smart, but make sure you're comparing apples to apples.
