Must I use the mortgage company that my builder directs me to?

The short answer is HELL NO…..When there are 400 thousand loan officers with different rates, why would you just pick one? With that said, builders will typically throw in some sweet incentives to get you excited. New refrigerator, landscaping and of course ZERO closing cost.

Incentives are wonderful but if they are giving you 5k in incentive and you can save 30k elsewhere where would you go? if you said 5k I don’t really have a good argument for you.

Your best bet is to properly shop the mortgage then take your best offer to the builder to match and throw in the incentive if they don’t want to lose the deal. That’s how you negotiate with a builder who has an inside deal with an LO.

Unfortunately, due to borrowers lack of resources, builders and agents can take advantage of them directing to their own benefit.

Check out our free mortgage shopping tools at

This question was initially answered in Quora by our co-founder and mortgage ninja Kevin. View in Quora

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