Mortgage on New Construction?
I'm under contract to purchase a newly built home that won't be finished until May. This is being build by a developer. Typically rates are only good for 60 or 90 days, but I'm interested in locking in now, and then perhaps shopping around later if rates drop. Are there any such programs out there where I can lock in 6 months in advance for new construction? by primer_279_477 from Sunland Park, New Mexico. Sep 9th 2011
Brady Smedsrud (BradySmedsrud)
#3 ranked lender in Montana - 17 contributions
Yes, you can lock in for long periods such as 90 or even a 180 days. However you will take some pretty serious hits on your rate for locking in for such a long period. You also may have a problem with finding a broker that will do this for you since there are many issues that may come up before the closing date that will change the details of the loan. If a broker locks a rate and is unable to close by that date they will be punished by that lender for not following through by that said lock date. I would wait a little longer and consider locking for 90 days or less once you know for certain the final price and finish date. Rates should not change too drastically in the next few months in my opinion.
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