The Construction Loan Process for you and your clients

(Last Updated On: May 4, 2017)

We are committed to helping you with your client retention by providing you a solution for you to do more permanent loans to your clients.

  1. Borrower Signature on Borrower Authorization and Credit Authorization forms From our Bank
  2. Borrower Signature on a borrower authorization that they are applying for a loan on your end noting Loan Number for the Permanent Take out Loan
  3. Full 1003 with accurate Asset, Employment & etc Information with Property as TBD and State
  4. Builder Contact Information (Name, Email, and Phone) & Builder Approval is obtained this is a 1x process and upon approval, the builder can build 4 properties simultaneously with us.  Based on how fast the builder responds in submitting info to us will determine when we can start item 8
  5. Qualifying Financing amount is obtained and we make sure that the take out amount is going to work and that feeds back into the construction amount and send that $$ amount to you for your take out the permanent loan.
  6. If this amount works for the borrower then you would submit for an approval at your end and submit to us an approval that has been underwritten.  Note: you need to underwrite your takeout loan at a rate that is at minimum 2% higher than the current market.  This is a requirement for us to accept your takeout commitment.  So as to avoid a rate increase in the market during construction that makes them no longer qualify for the takeout.
  7. At this time we should have a builder approval back and if not we will pause until the builder gets everything to us.  Once approved, the particular builder will not have to go through the process again.
  8. Upon Builder approval, your LO may, with the approval of the Borrower, submit the full doc set including property address, title contact, HOI contact, plans, and specs and introduce me and hand off for the Construction loan.  I will validate we have everything and respond to the Borrower directly ccing the LO
  9. Disclosures are sent & Upon Receipt, we will Process, Underwrite, close and manage the construction process.
  10. When about 60 days from finishing I will alert the original LO to start refreshing the file at your end for the final takeout commitment

Throughout the process, you are provided routine status updates, as they occur.  If something is urgent then an email or text to the LO.

If possible, have your LOs attend the construction closing so as to maintain that client face time.  We would not attend any closings from your clients.

The Bank, Branch and we have a do not solicit policy we do not enter your clients into our CRM to avoid any confusion during the construction loan and in the future.

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