• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

New Home Builder says I have to use his lender for purchase financing. Is this true?

April 18, 2013 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

Here is a previous post describing this exact situation, builders steering buyers into working with their lender. Know this- everything in a real estate purchase contract is negotiable, everything. No real estate agent, broker, or builder can dictate who you use for financing for your home purchase. That choice entirely yours to make. New home builders do have what are called affiliated business relationships with banks who offer residential financing or they’ll partner with just one mortgage bank and basically mandate that you get a second pre-qualification through that particular lender as well is offer you additional perks ie lender credits or builder credits, so long as you work with that particular lender.

Here’s the truth: you can work with your own lender and still negotiate any particular credits you’re looking for such as upgrades on the home, credits for closing costs etc. anyway.

Another tip on working with builders is that they will blatantly tell you you’ll get a better deal if you work with their sales agent at the subdivision. This is true, but you always get what you pay for. In other  words, the sales agent is representing both the seller and you, they have the same allegiance to both parties, how can they be your fiduciary by being responsible for two people at the same time with equal interests? In short, they can’t, meaning one party is going to receive better representation than the other one especially in a new home situation. Ask yourself this:  who writes the paycheck for the sales agent? Who do you think they’re more allegiant to the end of the day?  Outside real estate agents are paid solely by representing you.

By working with your own real estate agent and your own lender, you should still be able to purchase a new home with competitive terms.

Related Mortgage Advice from Scott Sheldon

  • Buying New: What You Must Know About The Builder's Mortgage Lender

    New home construction communities continue to offer many incentives to people looking to upgrade their…

  • Should I work with a mortgage broker or a mortgage lender?

    Depends-primarily on who you feel comfortable with. Let's be honest, this is the largest transaction…

  • Which Mortgage Company For My Home Loan?

    How to select the right mortgage company for competitive rates. Choosing the right mortgage company…

  • Are Home Appraisals Transferable To Another Mortgage Company?

    Generally, speaking it depends. Each mortgage company has different policies and procedures. On average due…

Filed Under: Purchase Mortgage Loans Questions and Answers

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window