If you are planning on building, Construction to End-Loan is for you. They will help you from the very start such as finding the perfect land, to ground-breaking and moving in. Available on your permanent financing is the extended lock options. Well, Blackhawk Bank will help you with your Mortgage Construction.
During the phase of construction, you can pay interest only on the outstanding balance. Variable during construction is the interest rate, and with the prime rate, by both moving up or down. Your interest rate will change if the Federal Reserve raises or decreases short-term interest rates while the house is being built.
The lender will convert the construction loan into a permanent mortgage after the contractor will finish in building the home. The permanent mortgage is like any other mortgage. You can either choose between an adjustable-rate loan and a fixed rate loan, and the loan’s term should be specified more likely 15-30 years.
You will be involved in the design process and can put your signatures on different part of your home and make sure it suits your needs and desires. There is a transparency in the costs of financing. Low down payments are allowed in Mortgage Construction. You are also involved all throughout the progress of the project. The Blackhawk Bank will give you a 1 point refund at the time of your permanent mortgage.
While getting a construction loan, you can borrow up to 95% of the total construction and land cost. The purchased land is the first payout on the construction loan, and it is paid for closing. The permanent loan and construction loan are simultaneously approved. Funds from your down payment will also be used before access funds of the construction loan to reduce interest expense. The payouts will be made through a company title and the projects established by Building Contractor must be utilized.
You also need to give the need information such as the Sworn Statement for the contractor and make sure that it is signed. You need to give the copy of the specifications and plans. Also, give your builder’s risk insurance and the signed construction contract. The Closing Disclosure for Purchase of Lot or HUD-1 Settlement Statement is also needed.
When the lender does not have complete home collateral, qualifying for a loan to build a house can be difficult. For the lender will want more details like the size of the house, the materials used and the ones who do the work such as the contractors and subcontractors. The one that can pull all this information together is the general contractor.
Effectively communicating with your builder to prepare and plan your construction is essential. You need to establish your expectations up front to have an enjoyable home construction experience. It is as well important to work closely with the loan officer to help you ensure that the approval of the loan will be hassle-free and smooth. Giving the necessary documents and requests for clarification will help the process be easy.
We would love to help you move smoothly. All you need is to contact us for further assistance.