New construction delays and interest rates

My husband and I found a new construction home we loved in the Denver area and signed a contract for a lot in September 2021. At the time of signing, the builder rep told us our estimated delivery date was march 2022, maybe April if things are delayed (which we expected). We said great, signed and put down the $10k earnest.

December 2021, we hadn’t heard about any changes in delivery date and my husband has the good foresight to initiate a rate lock with the builder’s preferred lender, just in case. We locked in at 3.3% for 6 months (till June 2021) which should give us plenty of wiggle room for our house to be delivered in March/April, right? Well, literally THE DAY AFTER we signed the rate lock, the builder gets in touch with us to say our home is now expected to be ready closer to May. Fine, that’s still within our rate lock but makes us a little nervous.

Since January (when building was originally supposed to start) we have gotten sporadic updates from the builder that essentially say that nothing is happening, materials are expected to be delivered “soon”, but no real update on delivery dates. Fast forward to today, April 12. Framing has not even started yet, and we are way past the original delivery date we had signed up for. Meanwhile, our rate lock is set to expire in June. We have been watching interest rates steadily go up past what we will be able to afford. The lender said we can cancel our current rate lock and initiate a new one after 30 days, which is pointless because by then the rate will probably be at 7% or higher. We asked if they would extend the rate lock for 60 days, but also know they have no incentive to do so.

We fully expected the building to be delayed and were prepared to move in to the home later than we expected; what sucks is watching interest rates make the home we thought we would get unaffordable to us, after having spent months imagining ourselves in it. We’re going to wait it out at least until the rate lock expires and see what our other lending options are before fully giving up, but slowly coming to the realization that this might not happen for us. We thought we did everything right and can’t help but feel screwed over and stupid.

I’m mainly ranting, but if anyone has advice or just words of encouragement it would be appreciated.

submitted by /u/Dramatic-Today399
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My husband and I found a new construction home we loved in the Denver area and signed a contract for a lot in September 2021. At the time of signing, the builder rep told us our estimated delivery date was march 2022, maybe April if things are delayed (which we expected). We said great, signed and put down the $10k earnest. December 2021, we hadn’t heard about any changes in delivery date and my husband has the good foresight to initiate a rate lock with the builder’s preferred lender, just in case. We locked in at 3.3% for 6 months (till June 2021) which should give us plenty of wiggle room for our house to be delivered in March/April, right? Well, literally THE DAY AFTER we signed the rate lock, the builder gets in touch with us to say our home is now expected to be ready closer to May. Fine, that’s still within our rate lock but makes us a little nervous. Since January (when building was originally supposed to start) we have gotten sporadic updates from the builder that essentially say that nothing is happening, materials are expected to be delivered “soon”, but no real update on delivery dates. Fast forward to today, April 12. Framing has not even started yet, and we are way past the original delivery date we had signed up for. Meanwhile, our rate lock is set to expire in June. We have been watching interest rates steadily go up past what we will be able to afford. The lender said we can cancel our current rate lock and initiate a new one after 30 days, which is pointless because by then the rate will probably be at 7% or higher. We asked if they would extend the rate lock for 60 days, but also know they have no incentive to do so. We fully expected the building to be delayed and were prepared to move in to the home later than we expected; what sucks is watching interest rates make the home we thought we would get unaffordable to us, after having spent months imagining ourselves in it. We’re going to wait it out at least until the rate lock expires and see what our other lending options are before fully giving up, but slowly coming to the realization that this might not happen for us. We thought we did everything right and can’t help but feel screwed over and stupid. I’m mainly ranting, but if anyone has advice or just words of encouragement it would be appreciated. submitted by /u/Dramatic-Today399 [link] [comments]

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