Justin Arlequin, Licensed Mortgage Loan Originator NMLS 1507059 (DHI Mortgage | a D.R. Horton Company)

Spam prevention
Rainmaker
5,192,989
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

The incentives for using the inhouse lender are usually substatial. Sometimes they will cover closing costs and throw in an appliance package or upgrade allowance.

Oct 30, 2016 06:39 AM
Rainmaker
5,583,173
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

the builder always wants the buyer to use his lender who has the construction loan.... it's comforting!!!  makes the builder feel like he has some control.... can communicate directly with his mortgage person....

Oct 30, 2016 07:04 AM
Rainmaker
7,793,734
Roy Kelley
Retired - Gaithersburg, MD

Convenience. 

Oct 30, 2016 08:47 PM
Rainmaker
707,262
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Typically a preferred lender in a new subdivision will offer (perceived) discounts to the buyer - but the buyer should always retain the right to research other options.  What is good for one buyer may not be the best for another.

Oct 30, 2016 09:36 AM
Rainmaker
908,818
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Things go smoother for buyer when they use builders preferred lender. incentives/ discounts for buyers. Less chance of appraiser problems. Rate.

Oct 30, 2016 07:51 AM
Rainmaker
2,170,625
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Improves Builder's Margin ?

Oct 30, 2016 07:23 AM
Rainmaker
1,525,616
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Often the lender for a new construction home offers a lot of incentives. Other than that, I go with a lender that I know and trust!

Oct 30, 2016 06:23 AM
Ambassador
2,679,499
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Lynnea Miller and Wayne Martin both gave good answers.  I love that term, "perceived discounts"!

Oct 30, 2016 12:28 PM
Ambassador
3,582,229
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Buyers will get incentives with their in-house lender. I'm not a fan of this practice but if it works better for buyers than so be it.

Oct 30, 2016 09:06 AM
Rainmaker
5,096,366
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

The main advantage is the when a buyer uses an in-house or preferred lender for new construction, they usually get some discount on closing costs. 

Oct 30, 2016 07:19 AM
Rainmaker
1,722,926
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

None, unless the lender is getting the rate bought down by the builder as Lennar usually does.

Oct 30, 2016 06:45 AM
Rainmaker
1,617,866
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

The new home builder gives more incentives using inhouse lender that outside lender cannot compete fairly in my opinion.

Oct 30, 2016 06:36 AM
Rainmaker
1,712,551
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

One has to be careful especially if the builder is offering a deal on closing cost. Very often you pay higher rates.

Nov 29, 2016 05:18 AM
Rainmaker
760,633
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Most new home builders in our area offer a large incentive if the buyer uses the in-house lender.  These lenders are competitive and hard to beat out.

Nov 03, 2016 09:56 AM
Rainmaker
1,498,578
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

The buyer is never forced to use any particular lender, however there are often incentives in new construction.

Oct 31, 2016 04:00 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Justin Arlequin Many builders give additional incentives for using their in-house lender. Buyers are free to use whomever they want.

Oct 31, 2016 02:31 AM
Rainmaker
780,694
Abby Stiller
TOP SELLING REALTY - Cape Coral, FL
SW Florida (239) 284-8637

It's all about incentives, but it's up the buyer who they want to use as a lender.

Oct 31, 2016 01:28 AM
Rainmaker
898,058
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Buyers should always have a choice, but a local (not necessarily in-house) lender is preferred.

Oct 31, 2016 12:28 AM
Rainmaker
3,415,644
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is all about the money. I prefer local and trusted lenders over internet lenders or so called preferred lenders any day

Oct 31, 2016 12:16 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Always allow the buyers to use the lender of their choice

Oct 31, 2016 12:11 AM
Rainmaker
4,853,532
Richard Weeks
Dallas, TX
REALTOR®, Broker

Barbara gave you a great answer.

Oct 30, 2016 11:57 PM
Rainmaker
987,252
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Bonus and discounts is what I can think of

Oct 30, 2016 10:21 PM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The in-house lender has already 'pre-approved' the real estate and need only vet the buyers finances. The means an easier process.

Since the enterprise in raking in mountains of profit from the build and lending, they can be more generous in creating benefit that Wells Fargo just can't do.

Besides, when it comes to Wells Fargo I advise folks not to do business with or vote for criminals.

Oct 30, 2016 10:00 PM
Rainmaker
4,554,400
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Typically there are incentives offered by the builder's preferred lender.   Real estate is about negotiation and buyers can opt for their own lenders but may be "penalized" if in a competitive market.  

Oct 30, 2016 09:43 PM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Buyers should compare.

Oct 30, 2016 09:30 PM
Rainmaker
1,157,785
FN LN
Toronto, ON

It depends on the situation.  Buyers are allowed to use whoever they want as a lender.

Oct 30, 2016 05:09 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Justin Arlequin - makes it easy for communication, as one benefit I see.

Buyers are free to choose  their lender, though.

Oct 30, 2016 03:46 PM
Ambassador
3,727,581
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

If the builder's preferred lender doesn't offer the best deal, a good buyer's agent can usually negotiate allowing the buyers to use whichever lender they prefer.

Oct 30, 2016 12:55 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It keeps cost down, expedites the sale and assures the builder that it is a real legitimate buyer. It is a comfort level for the builder.

Oct 30, 2016 12:05 PM
Ambassador
3,339,654
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Buyers ALWAYS have the choice to use any lender they want.  Lender credits are generally bull-crap. I see it a lot.  Rates are higher, they charge points and add a bunch of junk fees.  No benefit to anyone other than the lender. my 2 cents. 

Oct 30, 2016 11:59 AM
Rainmaker
4,975,890
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Most lenders can't compete with the builders lender. The incentive to the buyer is usually $3,000-$5,000 in closing cost paid by the builders lender. When you go to closing keys are given to the buyer from the builders lender. If its another lender keys are not given until the lender funds (which can be an issue sometimes).

Oct 30, 2016 11:12 AM
Rainmaker
1,231,853
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Let the buyers decide who to use.

Oct 30, 2016 11:11 AM
Rainmaker
1,153,744
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

For the Builder, he can offer better terms, pay off his contruction loan sooner and sell more homes. Buyers have an opportunity to upgrade their purchase and pay a little less each month while doing so.

Oct 30, 2016 11:00 AM
Rainmaker
5,850,301
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Builders have their own lenders, and they can offer paid closing costs to the buyers.

Oct 30, 2016 10:43 AM
Rainmaker
1,531,053
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

The incentive$$$ is the only reason to use in house...too good to pass up most of the time!

Oct 30, 2016 10:31 AM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It is much easier to use people who know what they are doing

Oct 30, 2016 09:46 AM
Ambassador
6,357,499
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Sellers of all kinds feel more secure with a lender who is sure to get the job done.

Oct 30, 2016 09:29 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

There are big benefits to the lender and builder that can translate to some savings for the buyer.

Oct 30, 2016 09:27 AM
Ambassador
5,033,416
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

The buyer may get fairly significant incentives from doing so. It's their choice.

Oct 30, 2016 09:20 AM
Rainmaker
1,840,236
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

There's a couple of reasons they want control over the buyer:

1) reputable lender that they've dealt with, no LendingTree on the computer stuff.

2) they roll it in making it seem the buyer is getting benefits when in actuality the builder is getting the bennies.  I've never seen a builder have an over market rate so far.  As far as customer service, that is very lacking.

3) Builder might buy down the rate making it even more rewarding & then throw in a free microwave!

Oct 30, 2016 09:13 AM
Rainmaker
2,775,931
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

In-house gets it done (if it breaths it buys) and has incentives to do so. They have partnered with the developer (skin in the game). Everyday that goes by in construction is another day of huge interest payments until loans close

Oct 30, 2016 06:59 AM
Rainmaker
823,379
Susan Laxson CRS
Palm Properties - La Quinta, CA
Realtor in San Diego, CA & Naples, FL

Many of our builders get a preferred rate with their own lenders and pass it on to the buyers.

Oct 30, 2016 06:58 AM