One of the things that inexperienced Realtors don't understand is why their prospect, who has been preapproved or prequalified for a mortgage, should consider using the builder's preferred lender.
First of all, as has been reported, it is not "common practice for builders to tell buyers they must use a specific lender in order to get the pricing they want."
The fact that the builder is using a preferred lender has little or nothing to do with 'price'. It is common practice for the builder to insist on using the builder's contract. There are plenty of new home buyers who insist on using their own bank or lender, especially if they have no interest in the builder's incentives.
Many production builders use preferred lenders for a lot more than mortgage financing. They need loans for land purchases, land development, constructing models and spec homes, and they need to know that their documents have been approved by the lender so they don't have to go through the costly and time consuming process of legal approvals every time they need financing.
Their preferred lender knows the builder well, and can anticipate builder needs as well as work with them times sales are slower than projected.
There is very little if any new homes sales training in this regard among Realtor companies, and frankly builders don't explain this to their co-brokers well enough either.
But having the preferred lender gives the builder room to offer such things as cash contributions to mortgage costs if your buyer uses the preferred lender. The builder's closing team has a relationship with the preferred lender that is hard to come by, giving the builder and therefore you, a much better chance of working through the mortgage process even when things 'come up', as they tend to do.
So the next time you have a question about the preferred lender, let the onsite agents explain it.
The strategy is to help Realtors deal with their fears and concerns, not learn about the homes. Our builders look forward to seeing 50-60 new homes oriented Realtors in their models every month," Brown said.
More than 1200 local Realtors have earned their NHCB designation through our program, and the Osceola County Association of Realtors (OSCAR) is now marketing the course to its members.
"Helping Realtors meet their needs has in turn done more to encourage them to help us sell our new homes beyond our expectations," Brown said.