Interest Rate Locks
At some point you may want to consider locking in your interest rate with your lender. This is something you need to discuss with your lender specifically. Each lender has different rates, points and loan variations. Do not assume the loan officer locked your rate the date of loan application. You need to specifically request this and follow up to make sure it was done.
You do need to know the following:
- You cannot lock in an interest rate on a THDA loan. The interest rate used will be the THDA rate the day of closing or upon final approval. You can check the THDA website at THDA.org for the daily interest rates.
- You cannot lock an interest rate on a pre-approval. You must have a loan in process with a property address.
- If you are purchasing new construction, you or your REALTOR must check with the LISTING agent to make sure the home will be completed on time. If you lock too early and lose your lock rate, you may have to pay money to keep the rate if you need to extend! The builder cannot “hurry the house along” because you locked in an interest rate too early.
Please do not lock in any interest rate until you have checked the building progress on your website page. We post every week what has been completed on each home. When you see that all items above the rate lock line have been complete, you are okay to lock your loan for 45 days or more. Please discuss this with your Realtor and/or Lender. Do NOT lock your rate until you speak with the onsite Realtor.
You should also know, in new construction all closing dates are estimates and are subject to inspections, suppliers and sub-contractors. It is almost impossible for any reputable home builder to give an exact date for closing when the closing is more than 60 days out. The builder and/or agent will not be responsible for any rate locks, loss of rate locks, etc. The builder and/or agent does not guarantee any interest rate. The builder and/or agent will not pay any penalties to have any rate re-locked. Locking an interest rate is totally up to the consumer and outside of the builders and/or agents control. Buyer(s) assume all risk and liability for any interest rate lock.