As you shop for your new home and visit sales offices, you may be finding that most builders want to refer you to their chosen lenders. While this practice may be surprising at first, in most cases it is beneficial to you as the purchaser. How does the builder’s relationship with a lender benefit you?

The benefits run from the financial to the practical to the logistical. The relationship means that the builder is driving as much of his business to that lender as he can. The result is that the lender will process his clients’ loan application in a more timely fashion. The lender also will be more likely to spend time working with you, helping to solve problems or glitches that may arise during the process, including any credit problems. The lender will have the combined motivation of satisfying the builder to

continue to capture his business, and making you, the purchaser/borrower, a happy client.

The financial benefit is also important. Builders will often provide more closing help or special options if you use their chosen lender. The reason for that is simple: due to the ongoing relationship with the builder, the lender will reduce some of his profit on making the loan and pass that savings back to the builder for options or other incentives that will be offered to you.

Do your research, but don’t automatically discount working with the builder’s lender. It could mean the difference between creating a home you love with the options you want, and making a compromise you might regret down the road.