Each builder works a little differently, but they will all require you prequalify either with their in-house mortgage company or their selected lender. YOU DO NOT HAVE TO USE THEIR LENDER. However, in most cases, if you do use the builder’s lender, there is usually an additional incentive and possible lender credit towards your closing costs.

Currently, builders with in-house mortgage companies are offering some crazy good incentives to use their lender (such as 4.75% 30-year fixed interest rate).

When you purchase a new build home, you will likely have to pay a deposit (somewhere between $5k-$30k). This amount will be held in a non-interest-bearing account and will be used towards your final purchase price. If you are building your home from the ground up, some builders will require you to pay a percentage of the design finishes you choose (usually between 2-10%).

The final amount will not be due until you close on the house.