Month: March 2013

by bdunklin bdunklin No Comments

Saturday, December 29 – put it on your calendar

The North Texas Association of Real Estate Investors is sponsoring a new seminar with three attorneys discussing the legal and practical issues related to planning your future and your family’s future. Topics will include wills, estates, probate, pre-death planning, IRAs, Roth IRAs, legal entities to limit liability and reduce taxes, and setting goals. For more information, contact Bryan Dunklin at texaslaw@email.com, 214 769 7377 or https://www.wepay.com/events/putting-your-legal-house-in-order-with-bryan-dunklin

 

by Simon Craig Simon Craig No Comments

A Snippet On The Basic Information On Mortgage For Building A Home

Are you planning to apply for a new mortgage? If yes, then you need to know that applying for mortgage for building new home is completely different from obtaining traditional mortgage on existing home. Remember, you’re required three loans in order to build your home. The three loans required for building a home are: one for the land, one for the construction phase and one for the permanent financing after the home is built. If you’re planning to apply for a home building loan, then the three loans mentioned above are often combined into two or one type of loan by the lender.

Here are a few facts that are essential for you to know when you’re applying for a home building mortgage:

Loan for buying land: Generally, the lenders are prejudiced to lend money on raw land at times. This is because it can be a difficult task for the lender to resell the property if the borrowers default. The lenders who’re lending may ask for more down payments that may exceed 20% along with high interest rate. Therefore, it is beneficial to pay cash if you can afford to pay for the land.

Loan for building the home: You need to apply for a construction loan when you plan to build a home. However, some of the lenders can provide you with the loan. Therefore, you need to provide blueprint as well as specifications along with appropriate permits and a licensed bonded contractor. If you can provide the required documents, then the lenders may consider lending for construction. In certain cases, the lender may inspect the property before providing you with the loan.

Permanent financing: After home construction gets over, make sure you pay off the loan. Usually, this process is completed with the help of a permanent loan, similar way a person applies for loan modification.

Once each of these three loans is accomplished one by one, you need to come across three closings. Therefore, you need to deal with attendant closing costs, legal fees and taxes. You can opt for combination financing that helps to merge at least two of the loans. Therefore, it can help to minimize the cost as well as paperwork.

You can manage to rollover loan and it helps to purchase land, construction of the home as well as permanent financing. You can manage to qualify for once but require paying only one set of closing costs. In certain cases, you can merge the construction and permanent loans if you’ve purchased the land. You can also use the equity in the land as a down payment for a construction-to-permanent loan.

However, the lender many vary in their approach in case of construction-to-permanent loans. Make sure you shop around in order to get the best rates as it can help you build a home.