The lending process “was probably the biggest headache” |

Illustration by Hunter Newton/Bankrate

When Jessica Lee bought her townhome in Nashville, Tennessee, the builder offered 5% in closing costs if she’d borrow from their preferred lender. The 28-year-old financial analyst felt if she didn’t use the lender, she wouldn’t get the house. “If the builder is offering it, it’d be crazy not to take it,” she says. “But then you kind of shoot yourself in the foot that you have to work with this lending company.”

Setting the scene on homebuying

Two-thirds of builders are offering incentives for buyers right now, including price cuts, rate buydowns and closing cost assistance, the National Association of Realtors reports. And townhomes like Lee’s make up 18% of single-family construction, an increasingly popular option thanks to their affordability and entry to homeownership.

But borrowing from your builder isn’t the only option — which isn’t always clear to buyers. It’s common expert knowledge that buyers who compare multiple quotes end up with lower rates than those who go with the first one they’re presented with. Builder rates can make sense for buyers, but it never hurts to shop around — which can be easier than buyers might realize. For example, the advertised rates offered on Bankrate on a given day are commonly a full percentage point lower than those advertised on major lenders’ own websites.

The plot thickens

Lee spent four years saving up for a down payment while earning close to $100,000, but still felt like putting down 20% would be impossible. That’s when she turned to her family for help.

With a gift from her parents, Lee was able to put down $33,000 on her $350,000 townhome, or 9.4%. She also took advantage of her state’s first-time homebuyer program.

Still, Lee describes the financing process as a big headache. “I don’t think I went a week without crying about it because it was just so confusing and overwhelming,” she admits. The time spent going back and forth about the loan before closing was fraught with anxiety.

“It felt like, at any moment, something could go awry, and I wasn’t going to be able to buy the house,” she says.

Now, Lee says she’d like to refinance when rates drop closer to 4%. And she might be closer than she realizes. In mid-March, advertised refinance rates on Bankrate were as low as 5.75% — almost a full point below March’s 6.7% national average refi rate.

Her view of homeownership

While Lee loves being a homeowner, the costs are less predictable than she expected. She didn’t account for taxes, HOA fees or escrow increasing year after year, especially living in a large metropolitan area.

“[Homeownership] is a really great option for stability, but not necessarily the financial haven that people made it out to be when I was younger,” she says.

Zooming out

American homebuyers are more satisfied with their mortgage lenders today than they were in 2023, when Lee bought her home. JD Power reports overall customer satisfaction with lenders was at 760 points (out of 1,000) in 2025, up 30 points from 2023.

Still, Bankrate’s 2025 Homeowner Regrets Survey found some homeowners with regrets say their mortgage payment is too high (16%) or they didn’t get the best mortgage rate (10%).

Her homeownership dream

Lee dreams of buying another house to rent out. She hopes her current house increases in value. And she wants to keep the house in her family. “This is building generational wealth for us,” she says.