Oh boy is this a rough one for us lenders. We Pre-Approve the buyer. Underwrite the entire file. Super pumped because the buyers are serious and making offers. Then the find a new construction the love and the builder offers them $5k in closing costs if they use the Builders lender OR they can use us and get ZERO. Lol Happens all the time and it stinks.
I speak pretty candidly in the episode and mean no disrespect to builders or builders lender. I just think the Builder should not be allowed to give incentives to use their lender but not give those same incentives to choose another option. I have seen many time where the loan we are offering is actually better for the consumer but they don’t want to risk the losing their deposit since the builder would make it nonrefundable if they used an outside lender.
I have seen other ones where our loan is still better even with the buyer not getting the incentives. There have been other cases where the builders lender is giving the a great deal and the borrowers really win out.
Anyways, this episode was me just complaining for a few minutes haha.
You can also watch the video version HERE...
Hope all is well and you have a rate day!