After picking out your home, options, land, improvements, and receiving your full mortgage approval, you will begin the building process. The loan process is broken up into the two basic steps below.

Step 1 …Staged Funding
The first step is an "all-in-one" staged funded loan used to pay for your land, improve your land for electricity, well, and septic to receive your new home, then set the home in place and pay the dealer upon delivery of the home. It is called staged funding because as each piece of the project (each stage) is completed and the work inspected and approved the contractor is paid (funded). After all the work is complete, your final or “end loan” will be completed and you will begin your regular monthly repayments. During the term of the construction, you will only need to make interest payments on the amount of money disbursed at the time the payment is due. This loan is a short term loan usually for only 90 days. Interest payments are due on the 15th of each month, after your construction loan closes. You cannot move into your new home until the final end loan closes and all the construction is complete.

Step 2 …Permanent Loan
The second loan is your final or “Permanent Loan.” This loan will pay off the short term construction loan. It is at a fixed rate for 30 years so your payment will stay the same, except for changes in taxes or insurance amounts. Your loan is always structured to maximize your buying power and minimize your monthly payments. To better understand how we can maximize your savings click here for an example comparison. If you have chosen our $0 money down loan, the only money you will need is for the application fee and the appraisal. When this loan closes, you can move in and enjoy your beautiful new home.

The Loan Approval Process:
During the "processing" and/or "underwriting" period, your credit, assets, income, and other determinants are checked and compiled. Your loan is either approved with conditions or approved without conditions or declined. Conditions are further documentation or checks the lender needs to finalize your loan before funds can be dispersed. Many borrowers become frustrated by last minute conditions that sometimes surface towards the end of a loan transaction. They can't understand why they are being raised so late. Final conditions are sometimes added on, because of information comes up during the process. We do our best to help you through the process. Remember, the process is not perfect and the we are simply trying to meet conditions imposed on us by other sources.

IMPORTANT NOTE: Do not make any adverse changes to your financial "picture" during the loan process. Things as simple as applying for a new department store credit card to purchasing a new appliance will at least force an explanation to be given and at worst may cause your loan not to fund and the approval to be withdrawn. Many times, a lender will obtain a final credit report and calls your employer one last time before funding the loan. Be patient and your loan will flow smoothly.




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