Buying new construction in DFW? Get a second opinion before you sign.
Builder incentives can be real money, or they can be a higher rate with a bow on it. I'll compare your builder's lender offer line by line against what I can get from 50+ wholesale lenders, for free, before you commit.
Do you have to use the builder's lender?
No. In most cases you can use any lender you want on a new build. Builders push their preferred lender with incentives like closing cost credits or rate buydowns, and those can be a good deal. But the incentive is often tied to using their lender, and the rate or fees elsewhere in the loan can quietly make up the difference.
The only way to know is to compare the actual numbers. Not the monthly payment they quoted you, but the rate, points, lender fees, and what the incentive is really worth.
Builder's lender vs. an outside broker
| Builder's lender | Independent broker | |
|---|---|---|
| Lenders | One | 50+ wholesale lenders |
| Incentives | Often tied to using them | May still apply. Ask the builder in writing |
| Rate locks | Their options only | Shop extended locks for long build times |
| Who they work for | Relationship with the builder | You |
Sometimes the builder's lender genuinely wins. If it does, I'll tell you to take it. My job is to make sure you're choosing with real numbers.
What to look at before you sign
- The rate and the points. A "low rate" can be bought down with points you're paying for elsewhere.
- Lender fees on the Loan Estimate. Compare origination, underwriting, and discount points line by line.
- What the incentive is really worth. A $10,000 credit doesn't help if the rate costs you more than that over the years you'll own the home.
- Rate lock length. Builds can take months. Make sure your lock covers the timeline, and know what an extension costs.
- Property taxes, MUDs, and PIDs. Many new DFW communities carry MUD or PID assessments, and your first tax bill may be based on the lot only. Budget for the full assessed value. See what taxes add to a DFW payment →
How the second opinion works
Or whatever the builder's lender gave you. A screenshot is fine.
Same down payment, same home, across my wholesale lenders.
Usually within 24 hours: whether their offer is good, and by how much.
Common questions
Should I use the builder's preferred lender?
Not automatically. Builder incentives can be valuable, but they're often tied to a higher rate or extra fees. Compare the builder's Loan Estimate against an outside quote before you commit. Sometimes the builder's lender wins, and sometimes it doesn't.
Can I use my own lender on a new construction home in DFW?
In most cases, yes. You can use any lender. Ask the builder in writing which incentives you keep or lose if you use an outside lender, then compare the full numbers.
How long can I lock my rate on new construction?
It depends on the lender. Many offer extended rate locks for homes that are months from completion, usually at a cost. As a broker I can shop extended lock options across multiple lenders.
Why is my first property tax bill on a new build so low?
The first bill is often based on the land value before the home was finished. Once the home is assessed, taxes can jump significantly, especially in communities with MUD or PID assessments. Budget your payment on the full home value.
What's a MUD or PID?
A Municipal Utility District (MUD) or Public Improvement District (PID) funds infrastructure in many newer DFW communities through an extra tax or assessment. It's part of your monthly cost, so it should be part of your budget.
I'm Matthew Parra, a mortgage broker with Hometown Lending based in Mansfield, TX. I've been originating loans in DFW since 2020 and shop 50+ wholesale lenders for every client. Rated 5.0 on Google. Read my reviews →
Let's look at your numbers
Tell me a little about your situation and I'll get back to you the same day, usually within a few hours.
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