I’m in the process of buying a house. This will be the third primary residence in the history of my family. My wife and I bought a small new-build home when we got married. Eventually we grew out of it and purchased the pre-owned home we live in now. Last week we signed a contract to buy our “forever home” from a builder. This house will be complete in just under a year. We are excited!
Buying a new home is exciting on its own. But buying a brand new home from a new builder is a blast! You get to customize almost everything. All your Pinterest and HGTV dreams can become a reality in the builder’s design center. Plus there is something special about buying a home that no one has ever lived in before.
But what about the loan? You may have an amazing home, but do you have an amazing home loan?
If you used the builder’s lender, you probably didn’t get the best deal.
We’ve created blogs and videos on this topic before, but builders are very intelligent. They create an amazing experience and typically earn top dollar for each one of these experiences – including the loan. There’s a chance if you bought a new build, the builder made it feel like you had to use their lender. They likely offered you an incentive to use their lender so they could control the transaction and earn additional income. You know the incentives. Things like upgraded appliances, additional money in the design center, or a contribution towards some of your closing costs.
Sound familiar? Was that you? If so, you probably didn’t get the best deal on your home loan. As a matter of fact, you’re likely paying a higher-than-market interest rate.
What should you do about it?
First, don’t get mad at the builder. Again, they earned that extra income through your less-than-competitive home loan by creating a very special experience. Builders are not evil. As mentioned, I’m buying my second home from a builder. But their business model is not focused on giving you the absolute lowest rate and best home loan.
Good news! There are a lot of mortgage companies that focus on just that–it’s all they do. They do home loans and they do it well. They are called Mortgage Brokers. If you’ve never heard of a Mortgage Broker or wonder why they are so much better than the builder’s lender, you can check out this article here. The bottom line is this: Mortgage Brokers offer the best rates and the best home loans possible.
What’s your action step?
Talk to a Mortgage Broker and ask them about a refinance!
You bought an amazing home from the builder that you plan to live in for a long time. You don’t have to live with the inadequate mortgage they offered. You can still keep your awesome home and get a new awesome loan by executing a home loan refinance. What’s more, you don’t have to pay back the incentives!
That’s right! Once you’re living in the home and the transaction is over, the builder cannot require you to keep the loan you got from their lender. You are allowed to refinance whenever you want and you will not be required to pay back the incentive.
If you live in Arizona and recently bought a home from a new builder, we would love to chat. We often help people in our community get the best home loans possible, even after they have moved into their new-built home. It’s one of the reasons why we won Mortgage Broker of the Year in Arizona.
Schedule an appointment below with one of our wise home loan advisors. They are happy to connect over the phone, in a video meeting, or in person to discuss the best rate for your amazing new-built home.