The Powerful Advantages of Using True Homes Preferred Lenders
Choosing the right lender is a critical decision when embarking on the exciting journey of building your dream home. At True Homes, we understand the significance of this choice and offer our clients the option of working with our preferred lenders.
While it’s important to note that True Homes receives no financial benefit from its client’s use of a preferred lender, our commitment to providing an exceptional home-building experience drives us to recommend this approach. The data from our surveys and years of experience have shown that clients who use a preferred lender often enjoy a smoother and more satisfying home-building process. In this article, we will explore the benefits and advantages of using True Homes’ preferred lenders and highlight some hidden costs and pitfalls associated with financing from other lenders.
The Advantages of Using Preferred Lenders
1. Timely Closings
One of the most significant advantages of working with a preferred lender is the increased likelihood of closing on time. According to our data, clients who use a preferred lender are *3.4 times more likely to close on schedule. This is a crucial factor for clients who have strict timelines and want to avoid the stress and uncertainty of delays.
2. Reduced Finance Delays
Clients who choose our preferred lenders experience significantly fewer finance delays during the preconstruction phase. They are *4.1 times less likely to encounter issues that can impede progress. This reduction in finance delays can lead to a more seamless and stress-free building process.
3. Lower Deposit Requirements
Working with a preferred lender allows you to pay a significantly reduced deposit to True Homes at the time of contract, helping you manage your finances more efficiently.
4. Local Appraisers
Our preferred lenders collaborate with local appraisers who have a deep understanding of the market and can accurately assess new construction valuations. This local expertise can be invaluable in ensuring that your home is appraised accurately and that your financing proceeds smoothly.
5. Access to Advanced Technology
Preferred lenders have access to our online technology, promoting better responsiveness and streamlining the communication process. This access can help resolve issues more swiftly and keep you informed at every step of the home-building journey.
6. Experienced Loan Officers
Our preferred lenders employ loan officers with substantial experience in new home construction. This expertise is vital in navigating the unique challenges of financing a newly constructed home. It ensures that your lender is well-equipped to provide tailored solutions to any issues that may arise.
7. Diverse Mortgage Products
Preferred lenders offer a wide array of products and programs competitive with the national mortgage market. This variety allows clients to choose the financing solution that best suits their needs and preferences.
8. Lender Credits
As an added incentive, clients who choose a preferred lender can receive a $2,000 lender credit, which can help offset closing costs or other cash-to-close expenses. This financial benefit can make the home-buying process more affordable and less stressful.
Hidden Costs and Pitfalls of Financing with Other Lenders
While working with True Homes’ preferred lenders offers numerous benefits, financing with other lenders can lead to a less satisfying home-building experience. Our past clients have highlighted several pitfalls associated with using non-preferred lenders, which often result in lower client satisfaction scores:
1. Prequalification to Underwritten Approval Delays
Clients who choose non-preferred lenders are *twice as likely to provide a prequalification and then experience delays in obtaining underwritten approval. This delay can be frustrating and may lead to unexpected issues in the construction process.
2. Cash-to-Close Estimation Variance
Non-preferred lenders may provide inaccurate estimates of the cash needed at closing. This variance can create financial stress and uncertainty for clients who are unprepared for unexpected expenses.
3. Inexperienced Appraisers
Appraisers selected by non-preferred lenders may not be familiar with the nuances of new construction or your specific sub-market. This lack of knowledge can result in appraisal discrepancies and delays in the home-building process.
4. Preconstruction Delays
Non-preferred lenders may fail to provide a loan commitment and appraisal upfront, causing preconstruction delays. These delays can have a ripple effect on the entire construction and closing process, leading to frustration and added costs.
5. Lack of Experience in New Construction
Inexperienced lenders may struggle to navigate the complexities of financing new construction homes. This lack of expertise can lead to delays and unexpected issues during both the preconstruction and closing phases.
The choice of a lender plays a pivotal role in your home-building journey. While True Homes receives no financial benefit from its clients’ selection of a preferred lender, we wholeheartedly recommend this option based on the significant advantages it offers. Clients who choose our preferred lenders are more likely to close on time, experience fewer finance delays, and benefit from local expertise, advanced technology, and experienced loan officers. Additionally, the lender credits provided can help make the entire process more affordable.
On the other hand, financing with non-preferred lenders may lead to various pitfalls, including delays, inaccurate cash-to-close estimates, and inexperience with new construction financing. These issues can negatively impact the overall satisfaction of the home-building experience.
The advantages of using True Homes’ preferred lenders are clear. They can help you achieve your dream of building a new home with greater confidence, fewer hassles, and a more satisfying experience. Call our dedicated team today to learn how our Preferred Lenders can help you secure financing for your home today!
*Denotes statistical information provided from our own client Survey results, facilitated by the Home Building Industry’s leading Survey and Feedback management firm, Woodland, O’Brien, & Scott.
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