Locking too early on a home that is not done yet can cost more, because longer locks cost the lender more.
Ask your lender the last day you can lock without slowing down closing, and what happens if rates drop after you lock.
When should I lock my interest rate on a new construction home?
Usually once the closing date is firm, often 30 to 60 days out. A builder's special rate is often locked for you as part of its deal.
More questions
- Should I use the builder's lender?Often it is worth a look, because the builder's best deals are usually tied to its own lender. You are free to use any lender, so compare them.Read the answer
- Are interest rates too high to buy a home right now?The builder buys your rate down. Their own lender offers a lower rate than most banks, and it is not a trick: the builder wants to sell the homes.Read the answer
- What is a rate buydown on a new home?A buydown is money paid at closing to lower your interest rate. On a new home, the builder often pays it.Read the answer
- Can I refinance later if interest rates go down?Yes, if rates drop and you still qualify, you can refinance to a lower rate later. Do not count on it, though. Buy a home whose payment works today.Read the answer