Getting the keys to your new home starts with one big decision: who will finance it. Not every bank, credit union, or lender is created equal – and choosing the wrong one can slow down your build or cost you more over time.
Start by Shopping Around
Even if your builder recommends a preferred lender, the choice is still yours.
“Interview potential lenders and pick one that has the capabilities to meet a range of your needs,” says Andrew Leff, Bank of America. “A responsible lender should be easily accessible and able to explain home loan options that you can understand and feel confident about.”
A good lender should:
Be easy to reach
Clearly explain your loan options
Help you feel confident – not confused
If they rush you or discourage questions, that’s your sign to keep looking.
3 Questions to Ask Every Lender
1. What Can I Comfortably Afford?
This is your foundation.
Ask about:
Debt-to-income (DTI) ratios
Estimated monthly payment
Taxes, insurance, and HOA fees
Why it matters: Many buyers assume they won’t qualify for certain programs—and miss out. A strong lender will walk you through available options, including down payment and closing cost assistance.
Pro tip: Get pre-qualified early so you can focus on homes within your budget and avoid surprises later.
2. Which Loan Product Fits Me Best?
Not all mortgages are the same.
Compare:
15-year vs. 30-year loans
Fixed-rate vs. adjustable-rate mortgages
First-time buyer programs
Rate lock options (especially important for new construction)
3. Are You Interested in a Long-Term Relationship?
You’re not just choosing a loan – you’re choosing a partner for the next several months (and possibly years).
Ask yourself:
Are they patient and responsive?
Do they answer calls and emails quickly?
Do they explain things clearly without pressure?
A lender who understands new construction timelines and communicates well can make the entire process smoother.
Builder’s Preferred Lender: Use With Intention
Preferred lenders often:
Understand the builder’s process
Offer incentives like closing cost credits or upgrades
Coordinate more easily with the construction schedule
That said, always compare offers to ensure you’re getting the best overall value – not just the easiest path.
The takeaway: Choosing the right financial institution is like choosing the right home – fit matters. Shop around, ask questions, and choose a lender that fits your needs – not just the one closest to home.
Julie Gordey
A lifelong educator, Julie Gordey, is a retired school administrator. After years of focusing on education, this University of Texas graduate now travels and enjoys freelance writing for BDX and NewHomeSource.com.