I recently signed a contract to build a new production build. The home isn’t set to be finished until September (it’s January now, in case someone reads this later). That’s 8 months.
The contract stipulates that I’m supposed to make an application for a loan within 7 days of the contract being executed. Further, it says that I need to submit evidence of lender’s approval of the loan within 20 days. It also says that I can’t change lenders.
How am I supposed to pick a lender this early (8 months before closing)? My existing home (which I’m selling to pay for this new one), is not even on the market yet and won’t be until May or June. Is this normal?
I have gotten pre-approved by a lender, but I want to shop around to pick a final lender so I make sure I get the best deal. I can’t do that 8 months ahead of time. Rates are going to change and I don’t want to get stuck with someone who has a good rate now, but won’t 8 months later.
I know it’s hard to give advice when you can’t read my contract, but does anyone know if this is common with new builds?