We are in the middle of building a new home with a production builder and are going to use their lender simply because their rates are competitive and we were able to negotiate so they will cover 2% of the closing costs if we do. If your builder uses a small local lender I would definitely talk to them; I found that local credit unions and lenders tend to have competitive rates and were more helpful and accessible (both my back up lenders are local CUs). Our loan is approved but we can't lock in a rate until 60 days before closing, which will be the last week of this month. They will repull credit to make sure there are no changes and we will need to supply new pay statements and bank statements but that's it. As for USAA, we are long time members and I love their banking, insurance and investment products but I HATE their mortgage services and would never deal with them again. (they out source their mortgage lending so you aren't truly dealing with USAA so you don't get the same level of service.) The two times in the past we've dealt with them were nightmares. their rates weren't the best available, I got misinformation from the rep handling the loan, their out of the area appraisers were way off (to the tune of $25,000...I knew the minute I saw the report it was all wrong). Both times we walked away and went with a local lender and we were so much happier! I didn't even bother looking at USAA with this house (though I looked at NFCU as a possibility) . At this point they could offer to beat all the great rates I've been offered and I still wouldn't deal with them due to all the issues we had before with misinformation, paperwork and bad appraisals. Building a new home is incredibly exciting but stressful, too, so finding a lender who can make the loan process as straightforward as possible is important. They poured our driveway and front steps yesterday and have started dry wall today, so the end is in sight and I can't wait!
