Buying New Construction in Castle Rock: Builder Lender or Outside Lender?
Castle Rock and the surrounding Douglas County communities have seen plenty of new construction, and almost every builder will encourage you to use their preferred lender. Sometimes that is a great deal. Sometimes it is not. Here is how to tell the difference.
Why builders offer incentives
Builders often offer credits toward closing costs or a rate buydown if you use their affiliated or preferred lender. These incentives can be valuable, and you should take them seriously.
Why you should still compare
An incentive is only one part of the picture. A higher rate or higher fees can offset some or all of the value over time. The only way to know is to compare the full cost on the same page.
How to compare offers
Ask the builder lender for a Loan Estimate, not just a quote
Get a Loan Estimate from an outside lender for the same loan amount and loan type
Compare the rate, total loan costs and cash to close
Think about how long you expect to keep the home and the loan
Ask good questions
Is the incentive tied only to the builder's lender, or can it be applied to closing costs with any lender?
Does the incentive expire, and how does that line up with the construction timeline?
How long can a rate be locked if the home will not be finished for several months?
Timing on new construction
New homes can take months to complete. That affects rate locks, how long documents stay current, and when you need to sell your current home. Planning ahead helps avoid surprises near closing.
