Thursday, April 6, 2017

Construction Loan Process

Well, I got my mind on my money and my money on my mind.

I told my husband last night, this is the last time I want to take out a mortgage - ever.  I am so done.  It is not only the fact that I will owe someone a large sum of money for a very long time, but the probing that goes into makes me feel like I am at a Proctologist!

So far, we have had to give them

1.  Tax Returns - for 2014, 2015, 2016

2.  W2s - like the returns were false.

3. Paystubs for the past 6 months

4. Bank Statements for the past six months

5. The paperwork on our landpurchase

6. Title company preference

7. Provide proof of a builder in good standing with the state of Texas

8. A set of house plans, electrical plans and outside view plans

9. A signed builder contract

10. A  descriptions of materials needed

11.  An estimate of the entire project

12. A draw schedule (withdrawing money during the building process)

This all had to be turned in before we could even start the lending process.  Yes, even to this level, I am squirming in my seat with people looking at our financials - I am actually quite private about it.

They will need our closing docs when close on this home in 2 weeks!  (it is starting to sink in!)

The questions have not started yet though.  Last time we were getting a loan, they made us sign a notarized statement that we were not getting divorced within the foreseeable future and that we were not move under duress. 

I am sure there will be questions about our home plans.  My biggest concern though is that the house will not appraise at the level we are building.  There is not a lot to go on for the area.  BUT, if they extend outside of our neighborhood about a 10 mile area, I think we will be ok.  An appraisal was done on the land in January and it was $5000 over what we paid for it.  So, I hope it all works out.

Right now, we turned everything in, and they sent us a lot of papers to sign for proof of receipt - like the truth in lending, the credit report pull, the terms of the construction to permanent loan, interest rate and since these loans are ARMs - the schedule for that  (yes, we will refinance to a fixed rate before the first change which is in 4 years and to lower the interest rate), for us to know there is counseling available, yada-yada-yada.  We will sign ALL of it again at closing, plus many sheets saying we are married and US citizens.

I am really hoping we can close in just a few weeks and get moving on with the process.  Now that we are only 1 week away from RV living - it feels a little more urgent!

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