Transparency Matters More Than Ever in New-Construction Financing

🧾 What’s Happening

Recent legal challenges involving large builders and affiliated lenders have put a spotlight on how total housing costs—especially taxes and escrow payments—are disclosed upfront. While cases are ongoing, the broader takeaway is clear: buyers are demanding clarity, not just low initial payments.

This moment is accelerating conversations around:

• Accurate property tax estimates

• Realistic escrow projections

• Long-term payment expectations beyond promotional periods

🌵 Why Arizona Cares

Arizona’s rapidly developing areas often see significant property tax adjustments after closing, especially on new construction. If buyers aren’t prepared:

• Monthly payments can jump unexpectedly

• Escrow shortages can appear in year one

• Confidence in the process takes a hit

Arizona buyers benefit most when lenders and agents proactively walk through year-two payment scenarios, not just the first statement.

🧭 What It Means Going Forward

• Stronger emphasis on upfront education

• Increased scrutiny of builder-affiliated financing

• More value placed on advisors who explain the “after”

Quick Takeaway: The lowest payment today isn’t always the safest payment tomorrow.