Why Do New Home Builders Want You to Use Their Lender?

If you have spent any significant time researching new home construction options and new home builders, you’ve discovered most builders have a “Preferred Lender” listed on their website. Why do builders and lenders form these “preferred” partnerships? Are there nefarious back room deal makings going on? No, absolutely not.
There are two main reasons builders will partner with a mortgage lender – and both give advantages and buying power to the home buyer.

First – most mortgage lenders have new construction programs that offer a percentage or flat rate towards lowering the mortgage loan amount or closing costs. Different lenders offer different incentives to use them.
Secondly – over the course of the partnership the builder learns the lender’s processes and the lender learns the builder’s. There are no surprise bumps or procedures securing the mortgage loan and ultimately the closing goes much smoother and efficiently. Less stress on all parties!

Core Homes is happy to announce we have entered into a Preferred Lender partnership with FirstBank Mortgage!first bank logo

Recently, Core Homes entered into a partnership with FirstBank. We have done business with FirstBank for several years and we are excited to work with them as a Preferred Lender.
We sat down with Rodney Long, our Mortgage Banker, to ask him some questions about what FirstBank Mortgage is now offering Core Homes home buyers.

Rodney Long Preferred Lender for Core HomesPlease introduce yourself. How long have you been in mortgage lending? What do you like to do in your down time?
My Name is Rodney Long and am currently working with FirstBank Mortgage. I have been blessed with the opportunity to assist families with their mortgage needs for 23 years. In my spare time, me and my family enjoy walking our dogs, kayaking, riding our bikes along the Tennessee River, and family game night.

What is the mortgage outlook right now, considering the Fed’s increase in interest rates?
The purchase of a home is a great way to secure future wealth through equity of owning a home. Today’s interest rates impact a family’s buying power. In a rising rate environment it is more important to put together a sound mortgage plan for future success. FirstBank can tailor a plan that meets their current need and stability to meet long term goals.

What information should a potential home buyer bring with them when they talk with you?
In order to complete a mortgage loan in a timely manner, I need the borrower’s driver’s license, most recent pay stub, and W-2. If they are self-employed then two years of their most recent tax returns.

Is now a good time to buy or build a new home?
Today is a great time to buy a home while housing prices are still affordable. Chattanooga home prices are still 22% lower than the market average. Families should buy today and take advantage of the equity appreciation in their new home.

In your experience, what are people most afraid of or perhaps, have the greatest misconception about mortgages?
I think the misconception of buying a new home is that it requires a large down payment. FirstBank has a wide array of mortgage products that require as little as 3% down and nothing for Veterans. Contact me to see what products fit your needs. We have an online application to get you started.

What should a person looking to buy or build a new home do right now, today?
I your are thinking of buying or building your forever home, I recommend the buyer(s) sit down with a FirstBank Mortgage Professional to start building a successful mortgage plan.

Last question: Why is FirstBank a good choice for Core Homes buyers for a mortgage loan?
FirstBank is one of the top mortgage lenders in our area. We are a personable, local community bank that can meet in person or we are able to utilize the most up-to-date technology to make the lending process seamless from start to finish. We offer Conventional, FHA, USDA, THDA, and VA loans to those deserving Veterans. And for Core Homes home buyers, we are offering a Lender Credit of 1% of the loan amount at closing up to a maximum of $5,000. This credit can be used to lower the interest rate on the loan, or can apply towards closing costs. This can represent a significant savings to the Core Homes buyer. 

 

Chattanooga home builder Core Homes blog post image house in framingCore Homes has Available Homes in all Stages of Construction
We have available homes in Apison, Harrison, and Ooltewah  and Soddy Daisy. From just at foundation to nearly complete! Give Kadi or Dell a call and discuss which Core Community is for you!

 

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