Translate every promotion into comparable dollars
Separate true purchase-price reductions from design allowances, temporary rate buydowns, permanent discount points and closing-cost credits. Some incentives reduce what you owe immediately while others change payments for only an initial period. Ask whether a credit expires, applies only to selected homes or requires a specific lender. A design credit may be attractive without reducing your cash needed for insurance or tax escrows.
- Get the complete incentive offer in writing
- List expiration dates and financing conditions
- Separate loan credits from noncash upgrades
Hold the assumptions constant across lenders
Request written estimates from the builder's preferred lender and an alternative for the same home, loan amount, term, insurance, taxes and closing horizon. Compare origination charges, discount points, lender credits, mortgage insurance and projected cash to close. The lowest featured rate may require an expensive upfront payment. The lender also matters if delays create rate-lock extensions or additional fees before construction finishes.
- Match the proposed closing date and lock period
- Compare page-two loan charges and page-three costs
- Ask what happens if the builder misses the completion date
Prepare questions before a nonrefundable deposit
A purchase agreement may assign different risks than a resale contract. Have qualified professionals explain the deposit rules, financing protections, change-order exposure and construction schedule. A lender cannot promise approval solely from a promotional flyer. Confirm the finished home will qualify for the intended financing and that your monthly budget includes completed-home taxes, insurance and any association assessments.
- Review deposit and contingency provisions
- Confirm completed-home tax and insurance estimates
- Keep a written comparison of net price and final payment
Official information
Terms, loan rules, funding and eligibility can change. These references are for education; always confirm the current written terms with the appropriate agency and lender.
CFPB — Compare and negotiate Loan Estimates ↗