LendingTree.com Shares the Pros and Cons of Builder Financing
CHARLOTTE, N.C., July 2, 2007 – Just as car dealers offer financing on purchases at their dealership, many builders offer financing through lenders with whom they have a business relationship. A one-stop shop for a home and a mortgage might seem convenient, but buyers need to make sure they take time to shop around for the best mortgage deal. Here are a few tips on builder financing brought to you by LendingTree.com.
There are pros and cons with builder financing your new home purchase. Here are a few cons. For one, it limits the number of lenders and mortgage products you can consider. With all of the mortgage products on the market today, you might not find the best one for your needs if you only visit one lender. You are also more susceptible to price manipulation, as any savings incentives the builder promises you might end up being repaid to their lender through higher rates and closing costs.
Of course, there are also some upsides to using a builder’s preferred lender. From flexible closing dates (if your home is not completed on time and you have to delay closing) to a greater likelihood you’ll be approved; sometimes the builder’s lender can indeed best meet your needs.
The key to home financing is to research all of your options. Make sure to never sign with a lender – whether a builder’s lender or someone else – until you’ve done all your homework and found the right mortgage that meets your financial goals.
For more information on financing your home purchase, visit www.LendingTree.com.
About LendingTree, LLC
LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, credit cards and high-yield savings accounts via www.lendingtree.com and 800-555-TREE.
Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC also owns and operates LendingTree Loans sm, LendingTree Settlement Services, LLC, GetSmart®, and HomeLoanCenter.com. LendingTree, LLC is an operating company of IAC.