New Construction Loan Options: From the Ground Up

New Construction Loan Options:

From the Ground Up

In a time where the inventory of homes for sale is limited, especially for existing homes, buyers have looked for options elsewhere.  Often new construction has been the answer they found ...

There are two (2) main areas to think about and discuss when:

1. You own your lot and are looking to build yourself a custom home
2. You find a new home subdivision and would be buying from a Developer/Home Builder (typically of the Builder's design)

During the first option where buyers already own the lot where their future home will be built, the buyers will most likely need construction financing to proceed with actual construction.  This has been something easier said than done in many instances.  

But at American Portfolio Mortgage Corp, buyers can now apply/qualify for a construction loan and then convert that construction loan into what is called an "End Loan" mortgage upon the completion of their home construction.  An End Loan pays off the loan that was taken to fund the construction of the home.  An End Loan is commonly a 30-year fixed-rate loan similar to that implemented for existing home purchases.

In Scenario One ... 

The first step of the process ... the construction loan ... works in this manner:

Home Plans, Specifications, and Contractor's Statements detailing the final home Costs and its qualities ... along with a list of the Contractors that will be contracting the home, building the home, and Sub-Contractors must be provided to the lender

1.  Application for the Construction Loan financing must be completed

2.  A downpayment (typically 20% or more) is needed.  If the lot is owned free-and-clear (meaning no loan is outstanding), that may serve as the equity or down payment, depending on the lot price/value and the Home's Value upon completion

3.  After Loan Approval is obtained, Building Permits must be acquired.  Once this is accomplished, actual construction can begin.  In most instances, the Construction Loan is controlled by the American Portfolio Mortgage Corp construction department and "payouts" (sometimes referred to as "draws) are made (upon completion at certain portions of the home building process).  

4.  Payouts typically are made in the following manner:

       A.  After excavation and foundation work is done

       B.  The rough carpentry work (known as the shell) is done

       C.  After the home is "under roof" and windows and doors  are installed

       D.  Rough-ins for heating, plumbing, electrical work is    completed

       E.  Final Inspection is performed (after 100% of the work is completed)

5.  After all payouts (draws) are made and the home is 100% completed, the End Loan takes place.  In most cases, an appraisal is performed, the title is updated, liens and payouts are cleared, and the Borrower(s)' credit, income and employment are re-verified for the final Mortgage Approval.

When the End Loan is approved and subsequently closed, the Construction Loan gets paid off and closed out.  Interest on the Construction Loan gets paid at this time (at the end), or in an Interest-Only Loan Payment during the term of the Construction Period.

In Scenario Two ...

The client is simply buying a newly constructed and completed home from a Builder in their development.  

For this purchase, the client must apply for mortgage approval after signing a real estate contract.  Builders typically require that Borrowers are Pre-approved before entering into a contract.

The Pre-Approval assures the builder that the buyer is qualified to purchase their home.  It also assures them that the Buyer can complete the transaction with financing upon the 100% completion of the home's construction.

This scenario typically means that initial approval of the buyer(s)' credit, employment, income, and debt-to-income has been performed and completed.  The appraisal, title commitment, and Homeowners Insurance requirements will likely be done at a later time, typically after construction is near completion, or 100% completed.

The Mortgage Lender and the municipality (of the construction locale) will likely ask for/require final inspection be performed.  This inspection, by an Appraiser and/or the local building inspector, is done to ensure the home is completed per the Plans and Specifications, Building Codes, and Contract terms.

No matter which scenario you choose, it's best to seek out the services of a loan officer that is experienced in new construction transactions, as they are often more detailed and complicated than regular loans.  If you're buying or constructing a new home, it's no time to work with an experienced or rookie loan officer.

So choose wisely, as only an experienced construction lender will assist in setting a realistic construction budget and goals: 

• Know the lending and construction requirements of each scenario above
• Be familiar with the entire construction process
• Be familiar with the new construction financing process, and the timetable associated with it  
• Take the time to thoroughly explain and walk you through the steps of that process
• Dependably qualify and Pre-Approve/Approve you for your financing so you are confident throughout the process of a successful completion and closing 

The transition from new construction financing to "End Loan" can be fluid and seamless when working with myself and American Portfolio Mortgage Corp.  

Contact me today to ask your questions, gain the info you need, and start on successfully reaching your home building and financing goals.

Are you hoping to Construct, Buy, Refinance or purchase a home or investment property in  Chicagoland or elsewhere in Illinois or Wisconsin?  Looking for mortgage financing answers, options, solutions, and experienced assistance?

Contact me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt
Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI Licensed


American Portfolio Mortgage Corp

NMLS #175656


Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
www.genemundt.com
gmundt@goapmc.com





 


              
   



      Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: 
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, 
Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, 
Cook County, and elsewhere within IL & WI.


Referrals are Appreciated & Welcomed!  

Pet Safety Tips for Halloween

Pet Safety Tips for Halloween

The Halloween Season with all its scary costumes, parties, tasty treats, spooky decorations, and haunted homes are finally here ...

But sadly, potential dangers also arrive with it.  And that means we should be taking the time and making the effort to plan, prepare, and place safety precautions in place.  

Those preparations, plans, and safety precautions should keep our furry friends in mind for this year's Halloween Trick-or-Treating hours and parties taking place too.

Follow the pet safety tips found below ... that way we make sure that this year's Halloween celebrations remain memorable for all the right reasons:  

Protect Your Furry Family Members:

Follow These Halloween Pet Safety Tips

*  Do not ever feed a pet any candy.  

Candy, especially chocolate, can be 

lethal to an animal

*  Restrict Pets to an area where they can 

find quiet and less-stressful activities

*  Halloween can be a day of stress for family pets.  Place them out of danger

*  If a Trick-or-Treater, do NOT provoke

someone's pet, whether in a 

doorway or in a yard

*  Should you dress up your pet, do not 

restrict their movements or eyesight, 

impede their breathing, or have anything dangling off them or their costume

*  Do not allow your pet near pumpkins, especially if they contain an open flame/candle

*  Pick-up and dispose 

of all empty candy wrappers 

and trick-or-treat bags.  

 *  Place glow sticks 

and jewelry up 

and out of the 

reach of your pet.  

They can 

be hazardous if ingested

*  Be mindful of battery-operated 

decorations, electricity sources or 

 electrical cords.  Don't allow chewing!

*  Be aware of the activity around you 

and all mischievous activities and 

people during Halloween season  

*  Make sure your pet is always properly identified 

(microchip, collar and ID tag).  

This is in case your pet escapes through an 

open door while you're distracted with 

your visiting trick-or-treaters

*  Loud noises and sudden movements can make your
pet nervous and on edge.  Stay aware of their reactions and emotions

* If you're entertaining for Halloween, 

keep your pets away from the festivities and in a safe room.  

Masks and costumes change how people look and smell to a pet, so even 

familiar people may become frightening. 

Put a sign on the door to the safe room.  

That way your guests know it’s off-limits. 

*  Watch your kids! Don't let them 

share their candy with a pet

Hope your Halloween celebrations are memorable, safe, fun, and sweet!  

Are you hoping to Buy, Refinance or purchase a home or investment property in  Chicagoland or elsewhere in Illinois or Wisconsin?  Looking for mortgage financing answers, options, solutions, and experienced assistance?

Contact me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt
Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI Licensed


American Portfolio Mortgage Corp

NMLS #175656


Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
www.genemundt.com
gmundt@goapmc.com





 


              
   



      Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: 
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, 
Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, 
Cook County, and elsewhere within IL & WI.


Referrals are Appreciated & Welcomed!  

 

Take These Steps for a Safe and Healthy Halloween

Halloween can be spooky and  scarrryyy!  Danger and dangerous situations can lurk everywhere.  

Because of that, extra preparations should be made, and precautions should be taken in order to ensure that your Halloween is memorable for all the right reasons. 

Keeping safety and fun first and foremost, I put together a handy and helpful list of ideas and tips that will assist you in making sure your Halloween parties, celebrations, and trick-or-treating are safe for all taking part.

Just remember ... stay safe and have a ghoulishly good time!

Halloween Safety Tips

For both kids and adults alike, the selection of Halloween costumes is important.  Whether purchased or homemade, a costume needs to be safe, comfortable, and hazard-proof.   

While making or selecting your costume, follow this advice:

• Make sure that ALL costumes are made of flame retardant materials  
• Choose light-colored costumes, if possible       
• When wearing a mask, do not limit or compromise your eyesight in any way
• Wear sturdy comfortable shoes ... forego the high heels
• Pre-Test any Halloween makeup you will be wearing in advance for possible reactions.  Wear/apply only non-toxic makeup 
• Place reflectors, flashing or glowing lights, reflector ropes, etc., on a costume that will be worn at dark.  Or have your child carry a light stick or flashlight (remember to check the batteries) to heighten visibility
• Make sure that a costume fits properly, as to avoid tripping or pieces of clothing (or Props) getting in the way or snag on objects
• Place your telephone number somewhere on your 
• child, just in case you get separated from them  
• Do NOT let children carry hard plastic items, such as swords, scythes, or other safety hazards.  Items such as these should be flexible to prevent harm if fallen on

     Before or During Trick or Treating ... 


• Have children eat a meal/healthy snack prior to heading out to Trick-or-Treat.  They are less tempted to indulge themselves with candy if they do.
• Do not eat homemade treats received from households
• If your child has allergies, think about utilizing gloves in their costume.  This is an added protection for them during a vulnerable time.
• Children should be accompanied by an adult.  The larger the group of children, the more adults needed
• Make sure children have "buddies" or Trick-or-Treat in tandem with another
• Plan a safe route and stick to it.  If older children are allowed to go in a group, make sure someone within the group has a cell phone
• Restrict routes to main, well-lit areas.  Tell children NO Alleys
• Stick to Trick-or-Treat hours established for your area ... or curfews
• Instruct your children to not eat any candy until you have inspected it
• Instruct children to NEVER enter the home they are visiting ... or a car of a stranger without your permission
• Have "that talk" with your child about destroying property and vandalism and respect for others 
• Remember to check both ways when crossing a street.  Hold the hands of little ones within the group, to make sure they do not dart into traffic




And for Teen Trick-or-Treaters and Adults: 



• If driving to a party, please drive safely.  Remain extra vigilant and aware 
• Take a cell phone with you
• If driving, make sure you have plenty of gas to get to your destination and back.  Halloween is not the night to run out of gas
• Follow curfews.  Law enforcement is strict  surrounding Halloween
• Should plans change, let your parent(s) or another adult know
• Vandalism is wrong, no matter the season or holiday. Don't get caught up in the moment and come to regret it
• Download the Red Cross Emergency First Aid App.  An app is available for humans ... and pets too 
• Carry your child's emergency medications with you, just in case 


Follow the above tips for your celebrations and your Halloween will be memorable and safe for fun, healthy, and tasty reasons!         



Are you hoping to Buy, Refinance or purchase a home or investment property in  Chicagoland or elsewhere in Illinois or Wisconsin?  Looking for mortgage financing answers, options, solutions, and experienced assistance?

Contact me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt
Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI Licensed


American Portfolio Mortgage Corp

NMLS #175656




Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
www.genemundt.com
gmundt@goapmc.com





 


              
   



      Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: 
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, 
Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, 
Cook County, and elsewhere within IL & WI.


Referrals are Appreciated & Welcomed!