Tip 1 

When buying a new home, most of the new home builders manipulate you into using their mortgage company in order to receive the incentives they are offering.  These incentives usually amount to $10,000 to $80,000.  Legally they cannot force you to use their lender. However, if you want these incentives you have to use ther lender.  I call it munipulation. The problem with this situation is that in most cases the new home builders lender charges anywhere from a quarter to three quarters of a percent higher interest rate.  Also the closing costs are higher then what you could get somewhere else. So you wind up paying some portion or all of those incentives back over time. Obviousley, they get a kick back from their lender for doing your loan.

Here is how to get around this issue and come out ahead. First, remember the sales person at the new home builders office does not represent you. They are employed by the new home builder and represent them.  You need someone to represent you.  It cost you nothing to use a realtor to represent you as a buyer's agent.  Hopefully, your realtor will know how to negotiate this situation on your behalf.  If not, remember your realtor works for you and you can instruct him or her on how you want this negotiated.

Secondly, get a Good Faith Estimate from a outside lender or the lender of your choice. It is good to have at least 2 good faith estimates.  Your realtor should know where you can get the best rates and lowest closing costs.  Take these good faith estimates with you before you write a contract with the new home builder.  This is what must be said by you or your realtor!  Give a copy of your Good Faith Estimates to the sales person and say.  We are willing to use your lender in order to get the incentives that you are offering.  "However, I want it put into the contract that your lender must match or beat the interest rate and closing costs that are on these Good Faith Estimates and provide me with a Good Faith Estimate stating my rate and closing costs."  Also, if the new home builder's lender cannot match or beat these Good Faith Estimates you want to keep the incentives and use the lender of your choice.  I have never had a new home builder Not agree to these terms.  Especially in a buyers market.