End Loan or Take Out Financing
If you are having a home built by a “production builder” (large
builders that build on speculation or specs – Arbor and
Renaissance are good examples), they have their own financing
for the construction. You will still, however, need to have a
full credit underwrite and approval for the loan that pays off
the construction loan when you buy the home at completion.
Builders want a full credit file underwrite so they know that
the home they build for you will close. This protects them from
a "sale
fail," so they will not be stuck with a home that is tailored
to you specifically. The other piece is that sometimes the builder
will want to steer you to their lender – under no circumstances
are you required to use their lender. Quite often they will have
packages that look attractive, but when analyzed actually cost
you money in the short and long term. Always review the info
with another lender to make sure there are no veiled costs to
you.
These take out home loans can be any of the following: Conforming,
FHA, USDA, Jumbo or Portfolio. The home loan type that you chose
should be based on sound decision making so you know you have
the best loan for your situation.
Extended Rate Locks
You can lock the loan up to 365 days so you can be assured of
a reasonable rate at the time of closing. Most extended locks
also have a free float down associated with them for your benefit.
They also will have a lock fee to secure the money on the open
market and hold it for you. This is called the extended lock
fee. It is not part of your closing costs, but a fee directly
to the bank for the cost of carrying the funds for closing for
you during your lock period. Lock fees vary by length of lock
and type of lock as well. Theresa Springer can show you the differences
so you can make a clear decision as to which type of extended
lock you want for your loan.
Experience extraordinary...
Call Theresa Springer today at 360-210-7984 to
see the difference that working with an experienced home
loan professional can make for you. |
