Need clarification on expiring lock

Credit Score : 778 Current debt : $0 (First ever loan)

I did a stupid decision of locking an interest rate w/ the builder's lender @ 5% w/ float down of max ceiling .375 (4.625%)

That lock is expiring : 21 Feb

As usual the builder is missing the delivery date more than 3 months and the home is not going to be ready by end of March. When i reach out to the builder's lenders , they are cheating me that they cannot give the market price even after the lock has expired. Looking for your valuable inputs and alternate suggestion.

1 Answer

Just because you start the loan with the builder's lender does not mean you are required to close it with them. I imagine that you were promised incentives such as free options or upgrades to use them, but it may be worthwhile for your buyers' agent (if you used one) or you to speak with the builder and see if they will give you the same incentives if you change lenders since (due to their failure to finish the home in a timely manner) your lock with their in house lender is essentially worthless. At a minimum, the builder could at least cover any lock extension costs if you stay with their in house lender, but you'll have to firmly yet politely ask them to do so.