Worried about interest rates while you build or buy in Woodfin? You are not alone. When timelines stretch and the market moves, locking the right mortgage rate can feel confusing. This guide breaks down rate locks for new construction in 28804, including float-downs, extensions, who typically pays, and how the process differs for a ground-up build versus a quick move-in at communities like The Springs. Let’s dive in.
Rate lock basics
A mortgage rate lock is a written promise from a lender to hold a specific interest rate for a set period. It protects you if rates rise before you close. Most locks do not automatically drop if rates fall unless you have a float-down option.
What a lock includes
A complete rate-lock confirmation should list the locked rate, expiration date, loan amount and product, plus any fees, points, extension rules, or float-down terms. Ask for this in writing so you know exactly what is covered and for how long.
Get it in writing
Ask your lender for a written rate-lock confirmation and review your Loan Estimate and Closing Disclosure to see how any lock fee, points, or credits show up. If a builder offers help with a lock, confirm in writing whether they cover fees or points and whether you must use a preferred lender to qualify.
Quick move-in locks at The Springs
Quick move-in and spec homes usually behave like resales. Timelines are short and predictable, often 30 to 90 days from contract to close. That means standard 30, 45, or 60-day locks are common and often come with little to no extra fee.
- Expect a standard 30 to 60-day lock window.
- Builders often use incentives on quick move-ins such as temporary buydowns, lock assistance, or closing credits.
- If the builder’s offer requires a preferred lender, compare it with another lender’s quote and get both in writing.
Ground-up build locks in Woodfin
Ground-up construction can take 4 to 12 months or more, depending on permits, labor, and materials in the Asheville area. That timeline changes your lock options.
Extended lock options
- Lock-now: You lock early for the expected completion date. This requires an extended lock and may cost more upfront.
- Lock-at-conversion or at closing: You wait to lock until closer to completion. This usually costs less upfront but exposes you to rate changes.
- Construction-to-permanent loans: Your construction financing converts to a permanent mortgage. Lenders set when the permanent rate locks, such as at application, a set date, or at conversion.
Local timing matters
Build schedules in Buncombe County can vary with permitting and contractor availability. Ask the builder for The Springs’ historical average completion times and recent actuals. That helps you choose between paying for a longer lock or accepting some market risk by waiting.
Float-downs and extensions
A float-down lets you lower your locked rate if market rates fall before you close. Many lenders require a minimum drop, such as 0.25 percentage points, and limit float-downs to one use. The cost varies by lender and can be a flat fee, a small percentage of your loan amount, or embedded in the initial rate.
If construction runs past your lock expiration, you may need an extension. Extension fees vary. Some lenders charge a flat fee or a rate premium per 30 days, while others require a full re-lock at current market rates. Sometimes the builder helps with extension costs as a concession. Always confirm the terms and costs upfront.
Who typically pays
- Borrowers usually pay for extended locks and float-downs unless a builder offers assistance.
- Builders may offer incentives on quick move-ins, including temporary buydowns, lock help, or points.
- For ground-up builds, assistance can range from none to partial coverage of lock or extension fees, often tied to using a preferred lender.
Get any builder-paid incentive in writing, including what happens if you switch lenders.
Choose your lock strategy
Map your timeline
Ask the builder for the expected completion date, recent actuals in the community, and any contract allowances for delays. Use a conservative estimate to select a lock window.
Compare lender programs
Ask each lender, in writing:
- What lock periods are available for my loan type, from 30 to 360 days or more?
- What does an extended lock cost, and how is it charged?
- Is a float-down available, what triggers it, and what is the fee?
- What happens if my lock expires — extension fees, rate premiums, or re-lock?
- For construction-to-perm, when does the permanent rate lock, and what if there are delays?
- Will I receive a written rate-lock agreement with all terms and fees?
Confirm builder terms
Ask the sales rep:
- Are there lock incentives, temporary buydowns, or fee subsidies?
- Is a preferred lender required to receive incentives?
- What is the average time from contract to certificate of occupancy at The Springs, and what are the recent actuals?
- If the build runs past my lock, will the builder contribute to extensions or re-lock costs?
Weigh predictability vs cost
- Extended locks provide rate certainty but come with fees or a higher starting rate.
- Waiting to lock reduces upfront cost but increases exposure to market changes.
- Consider non-rate incentives, like temporary buydowns or lender credits, which can lower payments even if your long-term rate stays the same.
Avoid common issues
- Lock expiring due to delays: Choose a lock that covers a conservative timeline, and negotiate shared extension costs with the builder.
- Vague float-down rules: Get clear triggers, costs, and execution steps in writing.
- Preferred lender pressure: Compare written Loan Estimates from the preferred lender and an alternative lender before you decide.
Example paths to consider
Quick move-in in 28804
If you plan to close within 45 days on a move-in-ready home, a standard 45 or 60-day lock is usually enough. Ask if the builder offers a temporary buydown or lock assistance and compare the total cost with another lender.
Ground-up new build in Woodfin
If your timeline is 6 to 10 months, you might choose an extended lock now for predictability or wait to lock closer to completion for lower upfront cost. If you lock early, confirm any float-down option and extension fees in case of delays.
Ready to plan your move
You do not have to navigate rate locks alone. If you are building or buying in Woodfin or North Asheville, we can help you compare options and coordinate with the builder so your financing timeline matches your home’s progress. Reach out to B. Allen Real Estate for boutique guidance and local insight.
FAQs
What is a rate lock for new construction in 28804?
- It is a written lender guarantee to hold a specific interest rate for a set time so you are protected if rates rise before your new home closes.
How long should I lock when building in Woodfin?
- Many ground-up builds require 120 to 360 days or more. Choose a window that covers a conservative timeline based on the builder’s historical completion data.
Can I get a float-down if rates fall before closing?
- Often yes, but terms vary. Many lenders allow one float-down if rates drop by a set amount and may charge a fee. Get the trigger and cost in writing.
What if construction delays push past my lock expiration?
- You may pay an extension fee, accept a rate premium, or re-lock at market rates. Some builders contribute to extension costs as a concession.
Do I have to use the builder’s lender at The Springs?
- Not usually, but many incentives are tied to preferred lenders. Confirm the terms and compare written Loan Estimates before deciding.
Are quick move-in homes different for locking?
- Yes. Quick move-ins typically close in 30 to 90 days and fit standard 30 to 60-day locks, often with minimal or no added lock cost.
