How do I compare lender options on a new build?
Credits vs. rate. Timeline vs. savings. Run the real numbers.
Example situation
“The builder's preferred lender is offering 6.75% with $12k in closing cost credits. My buyer's mortgage broker has 6.25% with zero credits. The builder says the $12k goes away if we don't use their lender. My buyer has a 760 credit score. I need to help them make the right choice.”
Judgment —
Both options have real value. This isn't about trust — it's about math at your buyer's specific timeline.
Reality —
Builders work with preferred lenders because they close on time more reliably — that's genuinely important on a new build where construction timelines and rate locks need to align. The preferred lender's $12k credit is real, but so is the rate difference. At 6.75% vs 6.25% on a $400k loan, your buyer pays about $133/mo more with the builder's lender. The $12k credit covers roughly 7.5 years of that difference. With a 760 score, your buyer qualifies for competitive rates with either lender.
Cost —
If your buyer sells or refinances within 7 years — which most first-time and move-up buyers do — the builder's lender with the $12k credit is the better deal. If they're staying 10+ years and rates don't drop enough to refinance, the outside lender wins long-term. Also factor in: the builder's lender may offer a more seamless closing experience because they've done hundreds of closings in this community.
Move:
Get official Loan Estimates from both lenders — not just rate quotes. Compare origination fees, title fees, and any lender credits line by line. Then build a simple comparison: total cost at 5 years, 7 years, and 10 years. Show your buyer the crossover point where one option beats the other. Present it as 'here's when each option wins' — not 'one is better.'
Real OneShot output — 1 input, 1 answer, no comfort