I actually did manage to negotiate slightly better terms with my builder's lender, but it wasn't exactly easy. They initially acted like their rates were set in stone, but once I showed them a competing offer from my credit union, suddenly there was some wiggle room. Still, even after negotiating, the outside lender ended up being cheaper overall. Convenience is nice, but saving a few grand is nicer...
"Convenience is nice, but saving a few grand is nicer..."
Couldn't agree more. I've seen this scenario play out quite a bit with clients. Builder-affiliated lenders often rely on convenience and the assumption that buyers won't shop around. When I built my own home a few years back, even though I had a solid relationship with our usual lender, I still took the time to compare offers. Ended up going with an outside bank—slightly more paperwork, but the savings were substantial enough to justify the extra effort.
I get the appeal of shopping around, but honestly, sometimes the convenience factor isn't just about being lazy or complacent. When I built my place, I initially thought I'd save big by going outside, but after factoring in delays, paperwork headaches, and some miscommunications between the builder and external lender...the savings weren't as impressive as I'd hoped.
—wish that had been my experience! Guess it really depends on your specific situation and how smoothly everyone communicates."slightly more paperwork, but the savings were substantial enough"
Yeah, I totally get what you're saying about convenience. When I built mine, I went with the builder's lender mostly because I was already overwhelmed with a million other decisions—paint colors alone nearly broke me, lol. The paperwork was straightforward enough, but honestly, I didn't even realize there might've been better deals out there until later. Like you said...
"Guess it really depends on your specific situation and how smoothly everyone communicates."
Communication was solid in my case, so no regrets—but definitely learned to do a bit more homework next time around.
I went through something similar—went with builder's lender just to keep my sanity intact. But looking back, I wish I'd shopped around a bit more.
"paint colors alone nearly broke me, lol."
Haha, relatable. I still twitch a little when someone says "eggshell or satin?"... Anyway, convenience is great, but sometimes you can score better rates if you're willing to deal with a bit more hassle upfront. Just depends on how much mental bandwidth you've got left at that point.
