What if there was a way to secure a reduced interest rate on your dream home without having to wait for the market to shift? That’s where a homebuilder forward commitment comes in, if available! This special financing option may allow the homebuyer to lock in reduced rates on certain homes! If applicable and available, this could be a great opportunity to reduce your monthly interest payment and make homeownership more affordable.
What Is a Homebuilder Forward Commitment?
A forward commitment is a special financing arrangement where a homebuilder commits to purchasing a set amount of loan funds from a lender at a reduced rate. This allows the builder to offer those reduced rates to eligible homebuyers on select homes. There are several reasons a homebuilder may want to offer forward commitments, such as:
- Sell Homes on Schedule – Forward commitments may help builders sell homes within a specific timeframe.
- Offer More Competitive Rates – Buyers may get a reduced interest rate.
- Help Buyers Save Money – Reduced mortgage rates mean could mean lower monthly payments.
The homebuilder gets to keep their inventory moving and homebuyers may lock in a more affordable loan! It’s a win-win!
Please note: Forward commitments are not available on all homes or in all markets. Please check with your sales team to discuss your options.
While forward commitments can offer significant savings on your mortgage rate, there are a few factors to consider.
- Limited Availability – Forward commitments apply to specific homes and markets and are only available while funds last. Restrictions and availability may apply and forward commitments may not be available in in all markets.
- First-Come, First-Serve – These rate reductions are often limited, so acting quickly is key.
- Closing Date Requirements – You may need to close within a certain timeframe to take advantage of the offer.
If you’re considering a new construction home, it’s worth asking about forward commitments to see if a lower rate is available for your dream home!
At Pulte Mortgage, we’re here to help you explore all your financing options. If you’re interested in a Quick Move-In home, reach out to your sales team or Pulte Mortgage Loan Team to see if a forward commitment rate is available in your area!
Not all programs, interest rates or loan types may be available.
