Appraisel and underwriting - Page 2

ccassaday · ‎10-21-2010

@151949 wrote:
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.

I understand all of that. I guess what I am trying to figure out is once the construction packet goes to the credit union a appraisel will be done. When can the builder start. Do they have to wait until everything is signed on the dotted line. We have had a hiccup with the covenants. We may have to change a couple exterior things. Just trying to figure out at what point can the builder start. Do they get a approval from the bank and start before the actual closing takes place. Just trying to get a good timeframe from when the everything goes to bank for appraisel and they start.

151949 · ‎03-09-2010

A terrible story. Friends of ours decided to build a home on the bay here. $650,000 which is a fortune in this area , but it's gorgeous. Anyway - house was built and they closed. Moved in. A few weeks later they get a letter from the bank that they haven't rec'd the deed. Come to find out that because the plumbing was never inspected and signed off on the occupancy permit can't be issued. So they make an appt with the plumbing inspector. They had to pay several thousand dollars to get this inspection finished because he couldn't see what was in the walls so all kinds of cameras & electronics had to be used to do the inspection.Finally get it signed off on.Go to the county to get the occupancy permit - fine - but the county says the closing wasn't legal because the occupancy permit wasn't issued yet , so they have to have another closing. Bank gets involved. long story short - they have been in this house now 6 months, haven't closed on it yet , no deed. Bank wants them out so the house can be sold.They are having to put their payments in escrow. There are multiple lawsuits - as you can imagine.They are both getting to the point where they have lost all joy in owning this house.

ccassaday · ‎10-21-2010

@151949 wrote:
A terrible story. Friends of ours decided to build a home on the bay here. $650,000 which is a fortune in this area , but it's gorgeous. Anyway - house was built and they closed. Moved in. A few weeks later they get a letter from the bank that they haven't rec'd the deed. Come to find out that because the plumbing was never inspected and signed off on the occupancy permit can't be issued. So they make an appt with the plumbing inspector. They had to pay several thousand dollars to get this inspection finished because he couldn't see what was in the walls so all kinds of cameras & electronics had to be used to do the inspection.Finally get it signed off on.Go to the county to get the occupancy permit - fine - but the county says the closing wasn't legal because the occupancy permit wasn't issued yet , so they have to have another closing. Bank gets involved. long story short - they have been in this house now 6 months, haven't closed on it yet , no deed. Bank wants them out so the house can be sold.They are having to put their payments in escrow. There are multiple lawsuits - as you can imagine.They are both getting to the point where they have lost all joy in owning this house.

That is terrible. They must of had a horrible builder. I do believe the bank will not give more money for the next draw until what they have done has been inspected. Sounds like your friend had a bad builder and bank. Our builder is the biggest one in this part of the state. The credit union we are using works with them all the time. I hope we can get our covenant issue resolved this week and everything can go to the bank. Hopefully it won't take long to start once they have everything. We have enough equity in our current house for our down payment so we can start before it's sold.

151949 · ‎03-09-2010

I suppose the blame for the whole mess comes down to the person who officiated at the closing, and clearly did not do it properly.

ccassaday · ‎10-21-2010

@151949 wrote:
I suppose the blame for the whole mess comes down to the person who officiated at the closing, and clearly did not do it properly.

Why was the bank giving the builder more money without seeing things were inspected. The way it should work is the bank issues a draw to the builder. Until that part of the draw is done and properly inspected the bank will not give any more money to move on with the build. Also a very bad project manager in this situation.

Tigriss · ‎03-12-2010

@Ccassady I'm sorry to hear about those nasty covenants! Is it something simple like paint color or is it materials? I can't imagine anything else with the exterior of a home that isn't even built yet. I would think that the builder would have realized the location and would know what the requirements are for that neighborhood. I'm so glad that I don't have to deal with a covenant. I don't know if I could deal with the whole big brother aspect of it. It is bad enough with the government let alone with your neighbors. I saw that X-Files episode about covenants....boy did they ever put HOAs into perspective.

ccassaday · ‎10-21-2010

@Tigriss wrote:
@Ccassady I'm sorry to hear about those nasty covenants! Is it something simple like paint color or is it materials? I can't imagine anything else with the exterior of a home that isn't even built yet. I would think that the builder would have realized the location and would know what the requirements are for that neighborhood. I'm so glad that I don't have to deal with a covenant. I don't know if I could deal with the whole big brother aspect of it. It is bad enough with the government let alone with your neighbors. I saw that X-Files episode about covenants....boy did they ever put HOAs into perspective.

This all lays at my dad's feet. It says in the covenants all materials on the front must be natural. No viynl. They new when they went to decorating but my dad thought they wouldn't care without asking. So now he is trying to get a meeting with the people we bought from to plead his case. Or he has to change to hardie plank. When we had a meeting with my sisters boss he asked about covenants. My parents mentioned it had to be 75% stone or brick which he said we had. But they failed to mention or forgot about the all natural siding on the front. The gabels and a small amount on the porch is vinyl. They are also complaining that the third bay on the garage is the front of the house because it's a angled garage. So he wants stone around the garage door.

homedecor1 · ‎03-09-2010

@ccassaday

I hope and pray that things start going smoother for you! Seems to me from reading all your posts regarding building this "Dream" home you've been on a emotional roller coaster.

Many of your posts seem like your building this home vs. your parents. (Since you seem to be asking ?s that your builder and/or parents should be dealing with).

I built a custom & track home many years ago & never remember any stress related from buying the lot, permits & approvals by

builder, getting construction mortgage to closing & move-in.

Maybe I was lucky because I purchased 5 years ago a 20-year old home & in the past 2 years have had many surprises!!! Lots to be replaced or fixed!!!

I hope once all the issues are resolved you & your parents can just sit back, shop & wait for move-in day!🏡

ccassaday · ‎10-21-2010

@homedecor1 wrote:
@ccassaday

I hope and pray that things start going smoother for you! Seems to me from reading all your posts regarding building this "Dream" home you've been on a emotional roller coaster.

Many of your posts seem like your building this home vs. your parents. (Since you seem to be asking ?s that your builder and/or parents should be dealing with).

I built a custom & track home many years ago & never remember any stress related from buying the lot, permits & approvals by
builder, getting construction mortgage to closing & move-in.

Maybe I was lucky because I purchased 5 years ago a 20-year old home & in the past 2 years have had many surprises!!! Lots to be replaced or fixed!!!

I hope once all the issues are resolved you & your parents can just sit back, shop & wait for move-in day!🏡

You have to understand since I live in the home with them their emotions become my emotions. It doesn't help that my mom is a half glass empty type of person. So her negativity and pessimism feeds off on me. I am very excited about this and to finally have a space for my things. All of us just are ready to move but I probably have the most to gain. But it will be easier on them to because I won't have to ask them for as much help. Also not to mention I have contributed a lot of money to help get our current house fixed up and ready to sell. Most of all it's just my personality I guess. I am just waiting for something bad to happen and all of this gets called off. I guess my mom and I in a way have the same personality.

I guess there is no real answer as how long it will take after everything goes to the bank.

homedecor1 · ‎03-09-2010

@ccassaday

I'm not being negative - I just hope & pray because you are a "loving" daughter and are so excited that it goes smoothly once things get resolved. Oh, we all know someone like your mom...don't get discouraged!

I like all the things you've chosen for your new room & bathroom! Can't wait to see the new house pics with all those beautiful things being put to good use in your new space!

😃🌹