construction-loan
Table of Contents
1 First Bank
1.1 First Banker
- First Bank Address
- (XXX) XXX-XXXX
1.2 Terms
- Interest-only for construction… that rate is about 5.5%
- After construction, $200 title fee… convert to 15- or 30-year mortgage
- Lock in interest rate about 70 days before end-of-construction
- Currently, 4.875% for 30-year
- Pay for completed work… they'll inspect…
- Appraisal fee $325 … plan on at least one more
- Closing additional fees: draw fee, inspection fee, priority pictures
- Draw fee makes sure title stays clean $300
- Inspection fee for going out there to verify work $350
- Priority pictures $75 (or early-start coverage)
- Draw fee makes sure title stays clean $300
- Mortgage will get sold
1.3 Getting Started
- Two most recent pay stubs…
- 2008 & 2009 Tax Returns and W2s
- Sworn construction statement, plans, & such
- Bank statements, but not retirement stuff
- 2-1/2 weeks or so
2 Second Bank
2.1 Second Banker
- Second Bank Address
- (XXX) XXX-XXXX
2.2 Terms
- Appraisal based on plans and specs
- About 2% for closing costs
- Escrows and insurance on top of that
- About another 1% closing on the construction loan
- About 6% right now
- Need to close on the final loan before the construction loan
- 180 days for construction loan
- Appraisal is only good for 120 days
2.3 Getting started
- Appraisals and title work are taking about 10 days right now
- Underwriters and banks then work on things for a week
- Three-to-four weeks
- Tax statements
- Proof of insurance + insurer info
Date: 2010-05-13 15:59:09 CDT
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