Negotiating an interest rate isn't easy at all, the majority of lenders are going to tell you that the interest rate is not set by them and it's true. Also I wouldn't just talk to who the builder likes for financing, look around and find a lender YOU like. The builder is getting a check and leaving, you're the one dealing with the contract and loan on that home.
I agree that it isn't easy, and it's worth doing. The lenders don't set the interest rates but they do decide if they want to pay for some or all of your discount points for buying the rate down. Typically the Capital Markets department will decide how much profit/loss they want to take on a specific loan. For builders who have an ownership stake in the lender (like MTH Mortgage with Meritage Homes) making less profit on the loan isn't as big of a deal as it would be to an outside lender. That is because the builder will make money on the sale of the home which can offset the lending side of the business. Meritage Homes and a lot of other builders are currently offering to pay $15,000 of buyers' loan fees when they purchase a home from them. They are also offering an option which can buy the rate down to the low 5% range if terms and conditions are met (details linked in the description). While you can shop around and use whichever lender you want, it's difficult for an outside lender to compete with in-house incentives. Definitely shop around though, just keep this advice in mind.
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Negotiating an interest rate isn't easy at all, the majority of lenders are going to tell you that the interest rate is not set by them and it's true. Also I wouldn't just talk to who the builder likes for financing, look around and find a lender YOU like. The builder is getting a check and leaving, you're the one dealing with the contract and loan on that home.
I agree that it isn't easy, and it's worth doing. The lenders don't set the interest rates but they do decide if they want to pay for some or all of your discount points for buying the rate down. Typically the Capital Markets department will decide how much profit/loss they want to take on a specific loan. For builders who have an ownership stake in the lender (like MTH Mortgage with Meritage Homes) making less profit on the loan isn't as big of a deal as it would be to an outside lender. That is because the builder will make money on the sale of the home which can offset the lending side of the business.
Meritage Homes and a lot of other builders are currently offering to pay $15,000 of buyers' loan fees when they purchase a home from them. They are also offering an option which can buy the rate down to the low 5% range if terms and conditions are met (details linked in the description). While you can shop around and use whichever lender you want, it's difficult for an outside lender to compete with in-house incentives. Definitely shop around though, just keep this advice in mind.
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