Builder Extended Rate Lock Program For New Construction Home Buyers

Waiting to lock an interest rate when buying a new construction home makes most home buyers feel especially anxious during the building process. A rate lock, also referred to as a rate commitment or lock-in, is a lenders promise to borrowers to hold  a certain interest rate amount for a specified amount of time, usually 30 to 90 days.

New Construction Homes

When purchasing a new construction home, the build time can be 4 to 6 months to completion. Most lenders will not allow borrowers to lock a rate until they have a scheduled completion date from the builder. This only occurs when the building process is about 60 days from the final walk thru of the home. During this waiting time frame,  interest rates may fluctuate up or down. Not knowing the actual monthly mortgage terms of your loan is sure to cause a lot of stress. If rates rise, the borrower may no longer be qualified for the home they are purchasing.

Lock Interest Rate

To help our Reno Home Buyers, Guild Mortgage Company is offering a Builder Extended Rate Lock Program! It is a great loan program that will allow home buyers to lock an interest rate while construction of the new home takes place. This program allows home buyers to plan their monthly expenses around their monthly mortgage payments, they are able to determine if they can afford upgrades in the home and if new furniture is an option! The process of purchasing a new construction home can be a wonderful experience one you know the terms of your mortgage.

Below are additional features this rate lock program:

  • 3, 4, 6 or 8 month interest rate lock-in terms
  • Available for Conforming and Government 30 year fixed programs
  • Float down option between 45 & 15 days of the lock expiration date or sales contract closing date
  • Rate lock protection to ensure new homes stays affordable
  • Competitive commitment fee for the extend lock term (fees vary on terms)
  • Ensures builders sales inventory remains secure
  • Couple with home New Construction home

There are many loan programs available to home buyers with many different options for locking interest rates so I always recommend my home buyers interview and shop around for a lender they trust. Guild Mortgage is a lender I trust but it is important for everyone to find one they feel comfortable doing business with.

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