If a home builder is willing to offer you incentives to go with their lending company, can you take advantage of refinancing afterwards?
Answers | 2
It isn't uncommon for a builder to have an affiliate agreement with a lender as a reason to align with them, but more often than not, it is the lender's success or track record where their pre-approval process and pull through ratios are concerned; The better ratios guarantees less of the buyers will fall out, having the forward commitments looks better for the builder on his balance sheet and the inventory will move faster positively affecting his cash flow.
So, depending on the loan to value (LTV) you purchase the home for, it rarely makes sense to refinance unless some time has passed and/or the value of the home has increased dramatically or the rate that you are refinancing to is 150 basis points less than the original rate. These are just some basic guidelines but you will always want to see what's available - case by case, so to speak.