A good fit if…
- You’re buying from a builder in a new community
- You’re weighing the builder’s incentives against an outside lender
- Your home won’t be finished for several months
- You’re building a custom home on your own land
Builder incentives vs. your own lender
Builders often offer closing cost credits or rate buydowns if you use their affiliated lender. Those incentives can be real, but they’re not always the best total deal, and you’re never required to use the builder’s lender for your loan. Get a Loan Estimate from both and compare the rate, the total costs and the cash you’ll need. Pete is happy to be the second opinion. The Loan Estimate review tool makes it easy.
Locking your rate on a home that isn’t built yet
If your home won’t be finished for months, an extended rate lock protects you from rates rising in the meantime. Longer locks cost more, and some come with a one-time float-down if rates drop. Timing matters, so talk with Pete when you sign the purchase contract, not two weeks before closing.
The Arizona property tax surprise
Here’s one that catches a lot of new-build buyers: in your first year, the county may still be taxing the land without the finished house. Your escrow account is set up on that low number, and when the full assessment hits, your payment goes up. Pete will estimate taxes on the completed home so your budget is realistic from day one.
Building a custom home
If you own land, or are buying a lot, a construction-to-permanent loan finances the build and converts to a regular mortgage when it’s done, with one closing. Rural lots in Yavapai, Coconino and Pinal counties may also involve wells, septic systems and road access, which affect financing.
Run the numbers
Common questions
Do I have to use the builder’s lender?
No. Builders can offer incentives for using their lender, but the choice is yours. Compare both offers on total cost, not just the headline rate.
When should I talk to a lender about a new build?
Before you sign with the builder. Your pre-approval, lock strategy and incentive comparison all start there.
This page is general information, not a loan offer, rate quote or commitment to lend. Program guidelines, loan limits and assistance programs change; figures shown are as of 2026. Eligibility, down payment and terms depend on your credit, income, property and the program. Ask Pete for current details.