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June 4, 2008
construction loans
first time home buyers getting closer to getting the construction loans. Any advise/points/ experience you might want to share regarding the loans, will be helpful.
Comments
Make sure you document for the bank all of your anticipated costs. That is, not just the GC contract, but anything you anticipate paying for outside the contract, and make sure you document up to 20-30% beyond the loan. You can do this with an estimate sheet from the GC, you don't have to go around and price everything. If your documented costs are too low, the bank will reduce the loan amount before closing.
Also, I assume the construction loan funds will be disbursed according to a schedule based on completion of various items. To the extent you need this money to keep up with progress payments to your GC, make sure your GC understands this because there will be a time lag between when your contractor hits benchmarks for progress payments and when the funds are released from the bank for that portion of the work. Make sure your GC can handle the lag and has the resources to keep the job moving.
Posted by: slopefarm at June 4, 2008 2:14 PM
Avoid a bank with refi/prepayment penalties or those that require to use their approved contractors.
Posted by: guest at June 4, 2008 2:27 PM
Don't use Wells Fargo!!!
Posted by: guest at June 4, 2008 4:57 PM
Why not wells fargo?
Posted by: guest at June 4, 2008 5:53 PM
Why not try the Brooklyn Business Library?
They can easily get that information or show you how to get it.
http://www.biz.brooklynpubliclibrary.org/
Posted by: guest at June 4, 2008 8:05 PM
Try Kathia Francis at Suntrust. Knowledgable, reliable. Has gone to bat for us on several occasions. Tell her Ari and Erin sent you. Good luck. It's a great program for the right situation.
Posted by: housebywe at June 4, 2008 8:26 PM
Wells Fargo is great! Easy to work with.
myrenovationfinancing.com
Posted by: guest at July 12, 2008 4:48 AM
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