For Northeast Florida Realtors
New-construction financing comparisons for Realtors
Compare the entire transaction: price, incentives, rate and points, temporary or permanent buydown, payment, cash to close, mortgage insurance, loan terms, property requirements, and the cost of giving up any incentive.
Builder incentives belong in the full comparison
A preferred lender may have builder-funded pricing or closing-cost support that an outside lender cannot duplicate. That does not make the offer automatically better or worse; it means the incentive, price, loan structure, and restrictions must be compared together.
Rate labels can hide different structures
A temporary buydown changes scheduled payments for a limited period; discount points may reduce the note rate; a lender credit trades pricing for closing help. Gary compares the official scenarios rather than matching a number with different costs or assumptions.
Construction timing adds execution risk
Completion dates, rate-lock periods, extensions, appraisal timing, certificate-of-occupancy requirements, inspections, insurance, and buyer changes can affect the financing. The contract and lender responsibilities should be understood early.
Use current documents
Advertisements and worksheets are not enough for a final comparison. The buyer should obtain current written terms and disclosures from each option and consider how long they expect to keep the loan.
Frequently asked questions
Clear boundaries for the partnership
Can an outside lender always match a builder’s rate?
No. Builder-funded incentives and preferred-lender arrangements may not be reproducible by another lender.
Is a temporary buydown the same as a fixed lower rate?
No. A temporary buydown changes scheduled payments for a defined initial period; the note rate and later payment remain governed by the loan terms.
What should be compared besides payment?
Include price, incentives, points, credits, mortgage insurance, cash to close, lock terms, fees, prepayment terms when applicable, and long-term cost.
Next step
Compare the written offers line by line
Gary can help the buyer understand competing structures without pretending that every builder-funded benefit can be matched.