Hardeeville and Okatie are two of the fastest-growing zip codes in South Carolina right now. DR Horton, Lennar, and a handful of regional builders are cranking out homes in communities like Hardeeville's Latitude Margaritaville, Sun City's active adult sections, and new subdivisions pushing out toward I-95. If you're buying new construction in the Lowcountry, you will be offered — often very persuasively — a referral to the builder's in-house or preferred lender.

My advice: don't sign anything with them until you've talked to me first.

How Builder Lenders Work

Builder lenders exist because they're profitable. Builders negotiate volume arrangements with certain lenders and receive referral fees or marketing payments in return. The lender handles all the closings in the community, and the builder sweetens the deal for buyers with incentives — closing cost contributions, appliance packages, or rate buydowns — contingent on using the preferred lender.

That's the key word: contingent. The incentives are often real. But the question is whether the rate and terms you're getting from the builder's lender are good enough to justify the package — or whether you'd come out ahead using an independent broker even without the incentive.

Real Numbers: A Recent Example

A client came to me after the builder offered a $10,000 incentive to use their lender. Their lender was quoting 7.25% on a $460,000 loan. I came in at 6.75%. On a 30-year mortgage, that half-point difference is roughly $150 per month — $1,800 per year — $54,000 over the life of the loan. The $10,000 incentive doesn't close that gap. My client used me, negotiated to keep $5,000 of the incentive for upgrades, and saved significantly over the long term.

I actively compete against builder lenders and I win frequently. Bring me the builder's loan estimate and I'll tell you honestly whether their package beats mine. If it does, I'll tell you to take it. I'm not here to win — I'm here to get you the best deal.

One-Time-Close Construction Loans

If you're buying land and building custom rather than buying from a production builder, you'll need a construction loan — a product most retail banks do poorly. I offer one-time-close construction programs that roll the construction period and permanent mortgage into a single loan, a single closing, and a single set of closing costs. No second close, no rate risk at completion.

Thinking about building in the Lowcountry? Let's talk before you sign a builder contract.