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[ccassaday]

Does anyone know how many days a typical mortgage rate lock is for on a one time close construction loan.  What if it expires before you can close. Do they give extentions? If they don't do extention do you have to go through the entire underwriting process again. This would be for a one time close where they close before construction starts.

[Boehm Collector]

Hi @ccassaday ....   I am a real estate attorney in New Jersey.  The length of a lock-in-rate depends on the lender.  Usually between 30 and 60 days.  If you cannot close by the expiration date most lenders will give an extension.  However, most charge a fee for the extension... which can be a considerable amount.  Some might extend the rate for a couple days without charging.  It all depends on your Lender.  

[kaydee50]

Completely agree with the attorney.  We're in Illinois and Quicken gave us 45 days to close but would have given us an extra 2 weeks, without charge, if we had needed it.

[Sweetbay magnolia]

I don't think you will have to be re-underwritten (though that could happen, even if just a review), but prevailing market conditions will influence any likelihood that you will keep the rate, or not - depends on what the lender intends to do with the loan (warehouse it or sell it).

Of course, if rates go down, it becomes less an issue.  Honoring a higher rate is generally acceptable (!).

[StephfromIdaho]

Call a lender in your state.

[ccassaday]

Thanks everyone. What I am nervous about is the rate was locked in on June 15. Our house isn't on the market yet. The construction loan could be ready to close as early as July 6th.   We can't close on it until we have a buyer and close on our current house. I have no idea how many days he locked in for. Maybe I will ask. The lender told us to put the house up immediately so we could coordinate the closings. But we weren't ready. Still at least another week and a half from putting on the market.