Appraisel and underwriting

ccassaday · ‎10-21-2010

For anyone that has built a home. How long did it take once everything from the builder is submitted for your appraisel and underwriting to finish and close on your construction loan. Taking into account loan papers I believe we're already signed to lock in the interest rate and credit score is over 800. Everything from pay stubs and w2s the bank already has. Plus houses in the area are within the same price range for comps.

ccassaday · ‎10-21-2010

One thing is I am not sure of is the loan might already be in the underwriters hands. They are just waiting for the appraisel and the construction packet.

Libbylady · ‎03-09-2010

We have built 4 homes, the last one was 30 years ago. This house is not in a development where there were styles to choose from. I designed the house, but it was not a super unusual style.

From start (breaking ground) to finish (moving in) was 8 months. The builder said it would be 6 months, but I kind of slowed the process as we saw the house progress. Molding here, extra closet there, better shower, built-ins, etc.

I think we did well with the house except for one thing... it never occurred to us to put a bedroom on the main floor.

Now that we are 30 years older we need to consider another move to a smaller home on one level. I feel so torn over this.

ccassaday · ‎10-21-2010

I guess I am asking once appraisel on the bid is done how long will it take to close on the construction loan before you can break ground. Do they close on the underwriting quickly after the appraisel?

Evie2004 · ‎09-09-2010

@Libbylady wrote:
We have built 4 homes, the last one was 30 years ago. This house is not in a development where there were styles to choose from. I designed the house, but it was not a super unusual style.

From start (breaking ground) to finish (moving in) was 8 months. The builder said it would be 6 months, but I kind of slowed the process as we saw the house progress. Molding here, extra closet there, better shower, built-ins, etc.

I think we did well with the house except for one thing... it never occurred to us to put a bedroom on the main floor.
Now that we are 30 years older we need to consider another move to a smaller home on one level. I feel so torn over this.

We love our 3BR & 2 bath ranch that we bought 25 yrs ago..it is the perfect size for us ..hope we can stay here forever! A developer is now building 2BR, 2.5 bath units nearby for twice what we bought ours for..1 bedroom is in the "lower level"

good luck with whatever you decide to do!

151949 · ‎03-09-2010

When we built our current home it only took about a month from the day we applied for the mortgage until they were ready to begin construction. However, the "mortgage" was through the builder. Both homes we have built during our marriage were financed by the builder.

ccassaday · ‎10-21-2010

@151949 wrote:
When we built our current home it only took about a month from the day we applied for the mortgage until they were ready to begin construction. However, the "mortgage" was through the builder. Both homes we have built during our marriage were financed by the builder.

Ours isn't financed through the builder. They have already filled out loan papers. Everything seems to be ready. They just need the construction packet from the builder to do the appraisel.

ccassaday · ‎10-21-2010

Does anyone know how a construction to perm one time closing works. Do you close at the end when the house is finished. I take it the bank can give the ok to start right after they do the appraisel of the bid.

ccassaday · ‎10-21-2010

I forgot to ask one other thing. Does the bank give the builder some kind of letter so they can start while closing is taking place.

151949 · ‎03-09-2010

The way I understand a construction loan is - the bank approves the loan and gives the builder a certain amount to get started, at certain points along the way - when certain predetermined points are reached - the bank releases a % to the builder then at the end , after the homeowners inspect and agree to accept the house as constructed , and ALL inspectors have signed off on the construction, a deed is issued by the state and a closing happens. In some states an occupancy permit is issued. At this time the closing happens. Now , you own the completed home & move in & start making payments on the mortgage.