Am I required to use the builder's lender?

Builders commonly offer incentives for using a preferred or affiliated lender, including closing-cost credits and interest-rate buydowns. Those incentives may be valuable, but they should be compared against the total cost of financing. Request Loan Estimates from the builder's lender and at least one outside lender, then compare rates, fees, loan terms, and incentive conditions. Buyers generally can explore outside financing, but builder purchase agreements may contain financing-related provisions that deserve careful review. Whether a particular requirement or incentive arrangement is permissible depends on the circumstances and applicable law. Do not assume every incentive is automatically available with an outside lender, or that every financing condition is enforceable. Review the agreement before signing and consult your lender or a qualified attorney if a provision raises questions.