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Mortgage Application New Construction

I just recently went under contract for a house that has yet to be constructed. The time frame the builders gave me for completion of the home was March-May 2015. I was given a 30 day deadline to show proof of mortgage loan approval to the builders. To date, I have submitted all of my documents, personal and contract information to my lender, however when I asked if this means that my loan application is being drawn up and submitted, the response I get is "the closer you get to an actual closing date the sooner we can consider locking in an interest rate. You have done all you need to do for now." What does this mean? Does this mean my application won't be submitted for review until the house is at least 60 days from completion? What's going on? Is this normal? Something doesn't feel right. This was a yes or no question, that didn't contain a yes or no in its answer. More of a vague read between the lines kind of feeling. Why is my lender acting like this? Is he purposely avoiding a direct answer or am I being a paranoid first time home buyer?
By tatjana.gibson596574 from NC Oct 15th 2014
Reply

Every lender handles things differently. They may not have a lock in option that covers as many days as you need. As far as the approval, that should be done within a 10 day period. Feel free to call me with any other questions. Rob 919-594-6905

Oct 15th 2014
by

This sounds okay to me as May is still a long ways off. The credit report and your documents are typically only good for 90-120 days, sometimes less. If you have been pre-approved for the rest easy and do not purchase anything or inquire for any future credit - keep things as they are. Save as much money as you can cause there is always one more thing towards the end. Once the home is close to completion they probably will pull a new credit report and get updated bank and pay statements from you to submit for underwriting.Alan 919-906-1373

Oct 15th 2014

I would be happy to have the opportunity to handle your mortgage needs issuing an approval for your builder though you will not be locked in and subject to market conditions we would issue a conditional approval.I can be reached 800-485-1387 Ext 116 or ballen@bankofengland1.com

Oct 15th 2014

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