With St. Louis booming with new construction, many homebuyers are facing the enticing offers of in-house financing from builders. But is it always the best move? Let’s explore the pros and cons of using the builder’s lender versus shopping around for a mortgage in St. Louis.

The Convenience of One-Stop Shopping:

St. Louis offers a vibrant mix of historic neighborhoods and sleek new developments. If you’ve found your dream home in a new construction community, the builder’s lender might seem like the perfect fit. Handling both your home purchase and mortgage with one company can save you time and paperwork. Imagine streamlining the process from house hunting to closing day, all under one roof!

Building Bridges: Communication and Special Rates:

Builders and their lenders in St. Louis often have a close working relationship. This can smooth the loan process, avoiding delays and keeping you informed every step of the way. Additionally, builders frequently offer competitive mortgage rates, sometimes with buydowns or incentives, to attract buyers. Securing a great rate on your new St. Louis home can bring significant long-term savings.

But Don’t Settle Too Soon: The Power of Comparison:

Even with the convenience and potential perks, shopping around for mortgages in St. Louis is crucial. In most cases, using a mortgage broker would result in considerable savings. Here’s why:

• Finding a potentially better deal: While builder lenders offer good rates, they might not always be the absolute best. They often have to pay hefty fees to be the builder’s preferred lender. These fees are often transferred down to their borrowers. Comparing quotes from various St. Louis lenders and brokers can ensure you’re getting the most competitive rate out there.
• More Loan Options: Builder lenders may have very limited loan programs, while traditional lenders in St. Louis can offer a wider variety, catering to diverse financial situations. Explore options like FHA loans or VA loans if they suit your needs.
• Negotiation Leverage: Having other quotes in hand empowers you to negotiate a better rate with the builder’s lender if you decide to stay with them. Don’t be afraid to play your cards right and secure the best deal for your St. Louis dream home.

Making an Informed Decision:

Ultimately, the choice between the builder’s lender and other options in St. Louis depends on your priorities. Weigh the pros and cons, compare rates, and choose the path that best aligns with your financial goals and comfort level. In our 20 years of mortgage experience, most borrowers would get significantly lower rate and fees by opting to get their mortgage done through a mortgage brokerage.

Bonus Tip: Remember, getting pre-approved for a mortgage before house hunting puts you in a strong position. St. Louis mortgage brokers, including Carlson Mortgage, can guide you through this process and provide a clear picture of your borrowing power.

By following these tips and conducting thorough research, you’ll be well-equipped to navigate the St. Louis mortgage landscape and secure the perfect financing for your new home. So, happy hunting and happy mortgaging in St. Louis!

Written by: Carlson Mortgage – a top-rated St. Louis mortgage broker providing home loans in the state of Missouri. We are routinely ranked as a #1 mortgage broker in Missouri on Yelp, Google and Zillow. We can be reached at (314) 329-7314 seven days a week.

Our loan application can be found here or you can call us at 314-329-7314 to speak with one of our mortgage loan officers. Also, here is our pre-approval page, if you are looking to buy a home or need a referral to a top real estate agent.

Let us be your source for some of the lowest mortgage interest rates in St. Louis on first-time home buyer, conventional, FHA, Veterans (VA), Jumbo and condominium (condo/town home) financing. Since 2004, our loan officers have been providing home loans and mortgage services in St. Louis that are tailored individually to your unique needs and to your financial situation.  Call us today to inquire about home loan interest rates, to get pre-approved for a purchase or a refinance mortgage, or if you have any general mortgage lending questions.