Take Out or End Loan Financing
Take Out Loans / End Loan Financing
If you are having a home built by a “production builder” (large builders that build on speculation or specs 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 rate 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 may also 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 may want for your loan.
Call Theresa Springer (MLO #70667/NMLS #70667) today at 360-798-4161 to see the difference that working with an experienced home loan professional can make for you.
Word on the Street...
"We went through a very challenging purchase where, after accepting our offer, the seller couldn't produce clear title. Theresa's extraordinary knowledge was our greatest advocate - she'd even advised the title company as to what steps needed to be taken. In the end, we walked from that purchase, but Theresa stood by us through it until we eventually found the beautiful home we did ultimately purchase. She's an incredible professional and we can't recommend her strongly enough!" -- Drew & Linda Z.
Testimonials appearing on this site are individual experiences from those who have worked with Theresa Springer. They are individual results and results may vary.