Lunch and Learn – March
- Wednesday March 19th
- 11:30 AM
- 2006 Brawley School Rd. Mooresville, NC 28117
Every month we are hosting a lunch with real estate brokers in the Lake Norman and Moorseville area to discuss industry relevant topics. This month we will be discussing construction-to-permanent financing and the options these loans can provide for home buyers. Construction-to-permanent loans can vary in that they may include the purchase of a lot and the construction of the home, just the construction of the home, or the construction of the home and a pre-existing mortgage on a lot. Of course this provides the benefit of having only one loan for home buyers to worry about as well as many other advantages that we will discuss at the Lunch and Learn.
Applying for the Loan
Applying for a construction-to-permanent loan is similar to applying for many other mortgage loans. The home buyer will need to fill out a mortgage application with the lending institution and go through the approval process. However in a construction-to-permanent loan the home buyer will need to submit other documents such as the construction contract between the builder, the building plans, the existing deed or the contract to purchase the lot, etc. and therefore the approval process may take a few weeks longer.
Payments and Disbursements
During the construction of the home, the lender will only make payments on interest and is not required to make any payments on the principal of the loan. Disbursements are usually made according to contract between the home buyer and the builder. Requirements for disbursements may vary according to the lending institution. For example a Requisition for Payment form may be required by the lender for each disbursement. The lender may also require a title update and an inspection.
Join Us March, 19th
We look forward to discussing this topic further in detail later this month. If you would like to attend or need more information please contact us or join our events via Facebook or Google + below.