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A builder can help make the home-purchase process easier and faster by making arrangements to have a lender on-hand who is already familiar with the project and/or models. The question the home buyer must answer for themselves is, is this "preferred lender" the best choice for them. The most effective way to do this is probably to obtain loan terms from other lenders. With multiple Loan Estimate forms in hand, you can easily compare apples-to-apples and see what advantages the preferred lender has to offer. In addition, you should be aware of current market conditions for transactions like yours. Compare all terms carefully; if in doubt, or if some aspect of a builders offer are only available with the preferred lender, ask for clarification in writing. Should you feel pressured toward one particular lender, ask for written confirmation that no parties are receiving monetary benefits from any other parties. That is illegal under RESPA (Real Estate Settlement Procedures Act) regulations! The desire to close quickly is natural, but make sure your long-term financial interest and home choices are not compromised for short-term speed. .
The mortgage Loan Estimate includes two lists of services involved in the loan process: services you CAN shop, and services you CANNOT shop. Borrowers are free to shop and compare the first list; they may have the lender provide these services, or another part. Borrowers MUST use the lender or listed provider for services on the other list. The CAN shop list might include the following: Pest Inspection Property-Line Survey Title-related services. These might be broken down further: Lenders title policy, protecting the lenders interest in the collateral (usually, the property.) Settlement agent fees, to cover the costs of facilitating the final transaction. Title Search, to document legal ownership of the property. Title Insurance Binder, which allows use of the title search results for a period of time. Fees from providers on the list provided by the lenders are restricted by the Loan Estimate figures; their fees cannot change by more than 10% between estimate and closing disclosure. Providers not on the list are not restricted by the Loan Estimate; the lender is not responsible for changes in their fees or variances from the estimate.