Should I use the builder's preferred lender?
By Travis Wright, REALTOR®, with eXp Realty
Builders often pair their incentives with a preferred lender, which is normal and can be a genuine credit. Right now, for example, select new homes in Elgin pair a $5,000 builder credit with a $5,000 match from the builder's preferred lender, tied to a November 15, 2026 closing deadline. But nothing requires you to use them. Ask for a loan estimate from both the preferred lender and a lender of your choice, compare rates, fees, and credits, then decide. If the builder's credit is the reason to switch, make sure it beats any difference in cost.
How to compare lenders the right way
A builder pairing an incentive with a preferred lender is common in new construction, and the preferred lender can be a good option. The key is comparing like for like before you commit to anyone.
- Ask for a written loan estimate from the builder’s preferred lender
- Ask for a written loan estimate from a lender of your choice
- Compare the interest rate, closing fees, and any credits side by side
- Only switch lenders if the builder’s credit beats any difference in cost
Travis's take: Nothing requires you to use the builder’s preferred lender. The right answer is the one with the better bottom line after you compare the numbers in writing.
The short answer, again
Should I use the builder's preferred lender?
Builders often pair their incentives with a preferred lender, which is normal and can be a genuine credit. Right now, for example, select new homes in Elgin pair a $5,000 builder credit with a $5,000 match from the builder's preferred lender, tied to a November 15, 2026 closing deadline. But nothing requires you to use them. Ask for a loan estimate from both the preferred lender and a lender of your choice, compare rates, fees, and credits, then decide. If the builder's credit is the reason to switch, make sure it beats any difference in cost.
Book 30 minutes with Travis
The best next step is a short, no-pressure conversation. Book 30 minutes at https://calendly.com/trav-realtor/30min, or call or text (580) 647-0915.
By Travis Wright, REALTOR®, with eXp Realty
Prefer email? trav.realtor@gmail.com