Colibri Real Estate 30-Hour Alabama Post License Practice Exam

Why might using a builder's preferred lender be beneficial?

1. It offers quicker closing times.

2. Diverse loan options are available.

3. Incentives may be offered.

4. Lower interest rates are guaranteed.

The correct answer is: Incentives may be offered.

Utilizing a builder's preferred lender can indeed be beneficial, particularly because incentives may be offered to homebuyers. When builders collaborate with specific lenders, they often create package deals that include incentives such as discounts on closing costs, lower fees, or even upgrades in the home as a way to encourage buyers to use the recommended lender. These incentives can make the overall buying experience more financially attractive and can help in streamlining the process. The attractiveness of these incentives is often a key factor in consumers' decisions. Builders have a vested interest in guiding clients to these preferred lenders, as it not only facilitates the sale but may also lead to a smoother transaction with less potential for complications during the financing process. While quicker closing times, diverse loan options, and competitive rates might also be factors when working with a builder's preferred lender, they are not guaranteed outcomes like the targeted incentives. The certainty of the potential financial benefits offered by using a preferred lender often makes this option particularly appealing to buyers.