Do I Have to Use the Builder's Lender to Get Incentives in Pace or Milton?

It depends on the builder. Many builder incentives come with conditions, and using the builder's preferred lender is a common one. Whether you take the incentive is your choice. The smart move is to compare the whole package, the builder's lender with the incentive against another lender without it, before you decide.

Vivian Corwin is a bilingual Realtor and Military Relocation Professional with IXL Real Estate Florida in Pensacola, FL, helping military and relocating families buy and sell homes across Pensacola, Pace, Milton, Gulf Breeze, and Navarre. New construction is one of my specialties, and I work directly with D.R. Horton, Adams Homes and Holiday Builders.

Builders use incentives to help homes sell, and tying one to a preferred lender is a common condition. For you, an incentive can lower what you bring to closing. But an incentive is one number, and a loan has many. What matters is the total cost of the home and the loan together.

1. Get pre-approved first. You'll know your budget before you fall for a floor plan. My post on pre-qualified versus pre-approved explains the difference.
2. Get the incentive in writing. Ask the builder what it is, what it's tied to and when it ends.
3. Get a Loan Estimate from each lender. One from the builder's lender and one from a lender you choose, for the same home and loan type.
4. Compare the totals. Look at the rate, the fees and your cash to close side by side, not only the incentive amount.
5. Ask about the timeline. Make sure each lender can close when the home is ready.
6. Then decide. Take the package that costs you less over the time you plan to own the home.

This is general information, not lending advice. Your lender sets your loan terms.

VA buyers buy new construction here too. Ask the builder's lender, and any lender you compare, how often they close VA loans on new builds. Ask how the incentive works with a VA loan, and make sure the home's timeline fits your report date. My page for military and VA buyers covers the rest of a VA purchase.

Often, yes. Builders sometimes hold the base price but negotiate on incentives, upgrades or closing costs, especially on homes that are already built. What's possible depends on the builder, the community and how long a home has been finished. My post on having your own Realtor for new construction explains how that works.

• Treating the incentive as free money. Compare the total cost, not one number.
• Comparing only the incentive amount. The rate and fees matter just as much.
• Switching lenders late. A late change can delay closing.
• Not getting it in writing. The incentive and its conditions belong in your contract.
• Visiting the model home alone first. Bring your own agent on your first visit. See my post on touring a model home.

Here's an example of how I lay out the steps. It shows the process, and it isn't a real client's story.

• Before the model home. Your budget, your timeline and your pre-approval.
• At the builder. I ask what incentives are offered right now and what each one is tied to.
• Side by side. We compare the builder's lender against your own lender, totals and all.
• The negotiation. I negotiate on incentives, upgrades and closing costs.
• The contract. The incentive and its conditions are written in before you sign.
• Closing. Timed to when the home is ready, with your lender on the same schedule.

Can I use my own lender to buy new construction?

It depends on the builder. Some incentives only apply with the builder's preferred lender, so ask what changes if you use your own lender.

Is a builder incentive worth it?

It depends on the whole package. Compare the total cost with the builder's lender against another lender before you decide.

Can I use a VA loan on new construction?

VA buyers buy new construction here too. Ask each lender how often they close VA loans on new builds.

Can you negotiate builder incentives?

Often, yes. I negotiate on incentives, upgrades and closing costs, and what's possible depends on the builder and the community.

Vivian Corwin is a bilingual Realtor and Military Relocation Professional with IXL Real Estate Florida in Pensacola, FL, helping military and relocating families buy and sell homes across Pensacola, Pace, Milton, Gulf Breeze, and Navarre. I'm not affiliated with the U.S. military, the VA or any base. Let's talk about your goals and your timeline before you visit a model home.

See how I help new construction buyers, or schedule a time to talk with Vivian.