Home Loans
New Construction
Buying a brand new home sounds straightforward — pick your floor plan, sign with the builder, and move in. But the financing side of new construction is more nuanced than most buyers realize. Having the right lender in your corner from the start can save you money, protect your interests, and keep the whole process from going sideways.
Brand New
No Repairs. No Surprises.
Lock
Your Rate Early
Builder
Incentive Strategy
How New Construction Financing Works
Financing a new construction home is different from buying an existing property. The biggest difference is timing — you are committing to a home that may not be finished for several months. That means your rate lock, your closing timeline, and your lender relationship all need to be structured with that gap in mind.
Builders often push buyers toward their preferred in-house lender. It is worth understanding why. Builder lenders are convenient, and builders sometimes offer incentives like closing cost credits to sweeten the deal. But those incentives do not always offset the cost of a less competitive rate or a lender who is not working in your best interest. Todd and Aaron know how to evaluate builder offers and structure your financing so you come out ahead on the full picture, not just the front-end incentive.
Ready to Get Started?
Talk to Us Before You Sign with the Builder
A 15-minute conversation before you sign a builder contract can save you thousands. No pressure, no obligation.
Why Work with an Independent Lender
We Work for You, Not the Builder
A builder's in-house lender is paid by the builder. Todd and Aaron answer to you and structure the loan in your best interest from start to finish.
Extended Rate Lock Options
New construction timelines can stretch. We have access to extended rate lock programs that protect you from rate movement during the build period.
Builder Incentive Analysis
We evaluate builder incentive packages so you know whether the closing cost credit is worth more or less than what you give up by using their lender.
All Loan Types Available
Conventional, FHA, VA, and USDA all work on new construction. We match you with the right product for your situation, not whatever the builder is set up to handle.
Who Should Be Talking to Us First?
If you are considering new construction – whether you have already toured a model home, signed a contract, or are just starting to look – you should have an independent lender review before you commit to anything. The earlier you bring Todd and Aaron into the conversation, the more options you have.
This is especially important if you are:
- Being asked to use the builder’s preferred lender to qualify for incentives
- Unsure whether VA, FHA, or conventional financing is the right fit for your new build
- Concerned about what happens to your rate if the build takes longer than expected
- Buying a spec home or a home that is already under construction
- A veteran who wants to use VA financing on a new build and is not sure how that works
- A first-time buyer navigating the builder contract process for the first time
There is no cost to having the conversation, and it can save you from making a decision that costs you for the next 30 years.
Good to Know
You are not required to use the builder's lender. Builders can incentivize you, but they cannot legally force you to use a specific lender as a condition of purchase.
Todd and Aaron know how to work alongside builder timelines and have closed hundreds of new construction loans in the Colorado Springs market.
Builder Incentive Check
Is It Worth
The Trade?
Send us the builder's offer and we will tell you in plain English whether the incentive is worth using their lender or whether you are better off going independent.
How the Process Works
Get Pre-Approved Before Signing Anything
Before you tour models or sign a builder contract, get a full pre-approval in hand. It confirms what you can afford, gives you negotiating leverage with the builder, and protects you from committing to a home you cannot close on.
Review the Builder's Incentive Package
We analyze the builder's offer side by side with what we can provide so you know exactly what the incentive is worth and whether using an independent lender saves you more overall.
Lock Your Rate with the Right Timeline
We select a rate lock strategy based on your build timeline. Extended locks are available to protect you if the home takes longer to complete than originally scheduled.
Stay in Sync During the Build
We monitor the build timeline, keep your file updated, and communicate with the builder so there are no gaps when it is time to close. You should not have to manage that yourself.
Final Underwriting and Close
Once the certificate of occupancy is issued, we move to final underwriting and close quickly. Your new home is ready, and so are we.
Typical Build Timeline
6-12 Mo
From Contract to Keys
Build timelines vary by builder and market conditions. Spec homes can close much faster. We structure your rate lock and financing around whatever timeline your specific build requires.
Worth Knowing
Your Rate Lock Matters More Here.
On an existing home purchase, a 30-day rate lock is usually enough. On new construction, you may need 90, 180, or even 270 days. Getting this wrong can cost you significantly if rates move during the build.
Common Questions
Can I use VA or FHA financing on a new construction home?
Yes. VA, FHA, USDA, and conventional financing all work on new construction. The key difference is the appraisal — VA and FHA have their own appraisal requirements that the property must meet. For VA loans specifically, the home must be built by a VA-registered builder. Todd and Aaron have closed new construction loans across all of these programs and will make sure everything is set up correctly from the start.
Do I have to use the builder's lender to get the incentives?
Builders can make their incentives contingent on using their preferred lender, but they cannot legally require it as a condition of sale. That said, many buyers find the incentive is worth using the builder’s lender after running a full comparison. Todd and Aaron will tell you honestly which way the numbers point for your specific situation.
What happens to my rate lock if the build takes longer than expected?
This is one of the most important questions to ask on any new construction purchase. Standard rate locks expire in 30 to 60 days, which is rarely enough time for a new build. Extended rate lock programs are available that can hold your rate for 90, 180, or even 270 days, sometimes at no additional cost depending on market conditions. Todd and Aaron will structure the right lock for your timeline.
What is a spec home and how is it different from a to-be-built home?
A spec home is a property the builder has already started or completed without a buyer under contract. Because the home is finished or nearly finished, the closing timeline is much shorter — often 30 to 60 days rather than 6 to 12 months. Financing a spec home is very similar to buying an existing property, which means standard rate locks usually work fine.
Can my financial situation change between signing the contract and closing?
Yes, and this is something to be mindful of. Because there is a significant gap between when you sign with the builder and when you close, major financial changes — like changing jobs, taking on new debt, or making large purchases — can affect your qualification. Todd and Aaron will walk you through what to avoid during the build period so nothing disrupts your closing.
Still Have Questions?
Just Ask. We Pick Up the Phone.
No automated phone trees, no waiting on hold. You get Todd or Aaron directly.
Call Todd: (719) 482-5359 Call Aaron: (404) 455-5710