Builders Preferred Lender...

[Cipher360]

Hello All, so an update on my new home journey. Got my credits scores up after Experian started showing my Amex and my utilisation paid down on my CC. Scores went up 15 points across the board on my FICO 5,4,2.. Just paid more on CC and waiting on an old collection that Loan Officer asked me to pay to report. Anywho.. for the title of this post. I signed a contract for a new home last Saturday. My wife and I fell in love with a house and lot so we signed. So the builder wants us to go with their preferred lender. They will pay some on closing cost etc etc. This gives me anxiety because I hate having to give my story to a whole new mortgage company. My credit, my self employment etc etc etc. This other company I’ve been working with already knows my situation. She has been working with me and giving me advice etc etc.
Are there any benefits, other than some closing cost being paid? It’s not much they’re paying and it’s almost not worth my anxiety to have to go thru all the explaining and prying in my past credit issues etc etc. Maybe I’m making too much of it. But the builder wants me to apply etc. Thoughts?? As always, thanks in advance

[JVille]

How many days do you have to make application? What they need is a pre-Approval letter. Is the house done? Or is this 5 months out.

[Cipher360]

It’s 8 months out. So there is time.

[pgtackle2003]

If the amount they're paying for closing costs doesn't matter too much to you, then stick with the lender you're comfortable with. It may not hurt to do an application and see if the rate they quote is possibly better than your current lender. I am in the same process as you, signed a contract for a new construction home. I had shopped the lender myself first and was also recommended to use the builder's lender. I am sticking with my original lender as I just feel more comfortable.  To answer your question, no there aren't any other benefits other than their offer to pay closing costs. This is simply a deal the builder and the lender workout for the builder to try and direct more business their way.

[Cipher360]

That is what I thought. I was afraid of all the credit inquiries but from what they are saying, it doesnt impact my scores if I do within 30 days and its a mortgage. Im watching my scores like a hawk because that is the delicate situation in my journey. I was happy to see that my scores went up 35 points after my closed discovery card was paid. I paid it like 2 weeks ago in direction of my loan officer. I had no idea that it was affecting my score that much!! 

[pgtackle2003]

Yes you can apply for both without an affect on your scores. You will see separate inquiries but as far as FICO scoring it will be treated as 1 inquiry