Builder Incentive Comparison Checklist

Builders often offer one of three incentives: a price cut, a rate buydown, or help with closing costs. Write each builder's offer in the blanks below so you can see what each one really changes.

Compare the three kinds of incentive

What each one changes	Price cut	Rate buydown	Closing cost help
What you borrow
The monthly payment
Cash at closing
What the builder is offering

Which one fits depends on you. Short on cash? Closing cost help might matter most. Planning to stay a long time? A rate buydown could pay off.

A rate buydown can lower your payment more than a price cut, depending on the numbers.

Questions to ask the builder

Ask these before you choose, and write down the answers you get.

• What exactly changes: the price, the rate, or the cash at closing?
• Does this change the price I'm quoted for the home?
• What's my monthly payment with this incentive?
• What do I need to bring to closing with this incentive?
• Does the incentive require using the builder's preferred lender?
• Is it tied to a timeline or a specific home or lot?
• What happens if it's not available when I'm ready to sign?
• Can incentives be combined, or is it one or the other?
• Will the incentive be written into the purchase contract?

There's no commitment to buy.