Do I Have to Use the Builder’s Lender and Real Estate Agent?

Jennifer Y. Ross
Jennifer Y. Ross
Published on January 2, 2018

 

The real estate industry does a spectacular job educating first-time homebuyers. There’s so much valuable information out there that no buyer should go through the process uninformed.

Buying a home in a new community – a brand-new home that no-one has ever lived in – is not only first-time homebuying on steroids, but the industry has left the homebuyer behind in terms of offering information and sharing knowledge about the process.

From the home loan process to choosing your real estate agent, it doesn’t have to be confusing.

Read on to learn answers to the two most common questions we receive from our clients who are considering buying a newly-constructed home.

The preferred lender

Many potential new homeowners walk away from the model home tour under the assumption that they must use the builder’s preferred lender as a condition of the purchase.

Is it any wonder?

Some builders’ representatives use carefully-chosen words to make buyers believe this

When, in fact, nothing could be further from the truth.

Now, the builder may require you to obtain loan pre-qualification from the preferred lender but, in the end, you can borrow money for the home from whichever lender you chose.

These lenders often offer good deals, though. They may offer to pay your closing costs or entice you with a specific amount, such as $10,000, if you obtain your mortgage from them.

Others will reduce the price of the home or throw in attractive upgrades as an inducement to use the preferred lender.

These are a bit more challenging to put into monetary terms so you may need to do some research. You’ll need a dollar figure to work with when comparing this lender’s offer to others.

Incentives, however, may turn out to mean nothing if not compared against other terms, such as the interest rate and points charged

By the way, go ahead and allow the builder’s preferred lender to pre-qualify you for a mortgage – you are in no way obligated to use their services in exchange for loan pre-approval.

You’ll be given a Loan Estimate that you can use to compare this lender’s offering against others. The Consumer Financial Protection Bureau offers a sample of the form, with explanations, on its website.

My best advice to my clients is to go loan shopping before you step one foot into a new home community’s builder’s office. Have facts and figures in-hand, ready to compare to what the builder’s lender will offer.

If you don’t have this backup,  there’s a good chance you’ll get swept up in the excitement of buying a new home, perhaps falling in love with one of the model homes, and your emotions will take over.

Armed with hard facts (offers from other lenders), on the other hand, you’ll be able to react logically instead of emotionally, and that’s a good thing when making a financial decision.

About the builder’s real estate agent

Just as it’s never a good idea to use the homeowner’s real estate agent when buying an existing home, it’s unwise to use the builder’s agent, and here’s why:

The owner’s agent, whether a homeowner or a builder, has one overriding aim: to get the owner the most amount possible for the home

The buyers’ agent, on the other hand, seeks to help his or her client spend as little as possible for a home.

See how the two duties conflict?

Regardless of how congenial, knowledgeable and eager the builder’s agent is, you need your own representation.

In fact, you’ll be asked on your first visit if you’re working with a real estate agent and your answer should always be “yes”

To be safe, we recommend that you ask your agent to accompany you on the first visit. If that isn’t possible, register your agent when you sign in.

Now, instead of using an agent with divided loyalties, you have your own representative who will go to bat for you in negotiating upgrades and extras, guide you during the inspections and assist you in taking care of all those details during the transaction.

 

Suburban Excurions Tours LINK

 

FREE Westchester Magazines LINK

Bio

Jennifer epitomizes Platinum Drive Realty’s motto “I grew up here. I live here. I sell homes here” and she is known for providing each of her clients with an exceptional experience guided by her expert local knowledge.  She works tirelessly to ensure each of her clients has a professional, enjoyable and successful Westchester community & home buying search or selling experience.  She often remains very friendly with her clients and welcomes the opportunity to be an ongoing resource as they settle into Westchester Living.  Every step she takes will embody her core principals; integrity can never be compromised, clients’ interests always come first and character, commitment, and passion truly matter. For her buyer clients, Jennifer looks forward to the opportunity of being “Your NYC to Westchester” guide and real estate broker.  For her seller clients, Jennifer is proficient at implementing an aggressive marketing strategy in order to obtain the best price possible in a highly efficient and seamless manner.

Jennifer thoroughly enjoys assisting buyer clients in navigating the landscape of  the Westchester residential real estate market.  She is skilled at enabling clients to define where they see opportunity & facilitating the process from initial search through closing.  Jennifer was awarded the Platinum Drive Star Award for Outstanding Performance in Sales & Client Services in 2014 & Platinum Drive Realty’s Superstar Award for Excellence in Sales and Client Services 2015 & 2016 for her outstanding performance in sales and client service.

In addition to her passion for local real estate, Jennifer has a firsthand understanding of home renovation and new construction.  Upon moving from NYC to Scarsdale, she and her husband performed an extensive renovation on their first home.  After completion, they moved onto their second project in Larchmont, a full house renovation and expansion.  More recently she is active with local developers who specialize in new home construction, home expansions and renovations.  Jennifer has the ability to understand a home’s full potential and can help clients find or create their dream home.

Jennifer is the Manager of Platinum Drive Realty’s Larchmont Office.  Jennifer was raised in Scarsdale.  After graduating from Scarsdale High School, Jennifer received a BA in Child Study & Sociology from Tufts University and an MA in Language & Literacy from New York University.  Jennifer currently lives in Larchmont with her husband, Michael, and their three sons, Braden, Devon & Zane.  She specializes in communities in Southern Westchester with a concentrated focus on the Sound Shore Communities of Larchmont, Mamaroneck, Rye Neck, Rye, New Rochelle as well as her hometown of Scarsdale.  Prior to real estate, Jennifer was a teacher in the Mamaroneck Public Schools.  Jennifer has a deep understanding of the local school systems and the needs of young families.

Professional Associations & Accreditations

Jennifer is a Licensed Associate Real Estate Broker & has her Accredited Buyer Representative designation (ABR) and her Seller Representative Specialist designation (SRS).  Jennifer is a member of the Hudson Gateway Association of Realtors & the National Association of Realtors.

Jennifer’s Website: westchesterliving.house

Jennifer Facebook Page:  facebook.com/JenniferYRossRealtor

Jennifer’s Instagram: instagram.com/westchesterlvng

Powered by WPeMatico

Powered by WPeMatico

I'm Ready To Explore Westchester!
Let's schedule my intro call.
Do I Have to Use the Builder’s Lender and Real Estate Agent?
Please use a valid email.
Please fill in all fields.
view now