When to apply for a mortgage with a new development???

lanaloonyu, I'm in a similar situation, though this isn't my first time buying, but it is first time buying in NYC, and first time buying new dev. After signing, I started talking to lenders, and providing them with some information, but did not start the application process until I got a letter with a formal closing date. Some might say this is cutting it close, but I feel I "prepped" my lender enough, and had a long-standing relationship with them, so things should work out. If you feel confident their closing date will stick, but still haven't received an exact date and time confirmation, I'd start the process within that 60 day window and see what your lender will do if closing gets pushed further. Good luck!

I specialize in new developments. It really depends if youre a gambling person or not. Its fine to wait within 60 days prior to closing. However, you are gambling to see where rates are then. My recommendation is, if you are happy with today's rates then you can do a long term lock. We allow a free float down option so its a win-win situation. In the case you are closing in August, I would lock at least 6 months. Most new developments never close on time. sunny_hong@countrywide.com

With banks tightening on their lending requirements, how do you proceed if you are among the first buyers in a new development? As I understand it, in the current climate, the best rates are available for buildings where there is about 70% owner/occupancy or at least under contract, failing that, you are left with other lenders who, depending on their assessment of the solidity of the development, owner occupancy/under contract percentage, etc. will hit you with a much higher rate. It would seem that such a climate would make it difficult for those getting in on the ground floor, as it were, of a new development, unless they had enough cash to buy the unit outright with no financing.

Fannie Mae does have a 51% pre-sale requirement. We currently still have no pre-sale requirements. So rates do not vary whether the building is 20% sold or 70% sold.

lana- i would start the process 60-75 days out, that would give you plenty of time, and as far as free-float downs and long term locks- that costs money and i wouldn't listen, and less you are nervous about rates, and feel comfortable to pay for the long term lock, please remember any time you have a bank to hold the rate (even 1 day longer) it costs money, because the bank is at risk, the other person should be embarrassed,