How Can You Use A Construction/Renovation Loan

There are many different types of loans available to you in this current market, and this is the best time in years to purchase a new home. What you may not be hearing much about is the ability to take out a loan to build your own home. Have you given any thought to or considered the possibility that you could build a house of your own?  People are often quick to dismiss this idea because it seems very difficult or only for the super wealthy, but that is not the case.  I’m going to discuss in this blog how you can obtain a construction/renovation loan and build/design your own home.

Borrowers wishing to build a custom home may obtain financing through a package program called “Construction/Permanent financing”. This program takes a borrower though land acquisition, construction and conversion to a permanent loan upon completion of the project. A construction/permanent loan is a one-time close loan program to finance the construction of your dream home, providing both the construction funds and the permanent loan. This means you will save thousands of dollars by not having additional closing costs from multiple loan settlements.

The normal construction/permanent loan allows for 6-12-months for completion. Construction extensions are available if necessary. The size of the dwelling and the time of year are two factors that may effect your construction loan term. Long-term rate protection for the permanent loan is available for customers worried about rising interest rates. During the construction period, interest is only charged on the amount of the loan actually outstanding. When the home is completed, the permanent loan period begins.

Borrowers who are buying a home, or have an existing home which needs to be renovated or remodeled, can utilize a renovation loan program. This loan finances the purchase or refinance of the home as well at the improvements to be made. Just like the construction to permanent loan program, the construction and the permanent phases are combined into one loan, saving time and money. The renovation or remodeling can take up to 12-months, with draws as frequently as monthly, depending upon the complexity of the project. Once the work is completed, the loan automatically rolls to the permanent loan.

Many people do not understand or appreciate the idea of building, whether because they find it more complicated or too expensive, but it’s actually quite simple. Think about a house where you aren’t having to remodel to fit your needs and aren’t unsatisfied from the lack of quality design. Whether you’re in the market to buy, renovate or build, Intercoastal Mortgage Company is the lender for you. Give me a call andachieve the dream of building and owning your own home.

ICMTG Perfectly Poised for these Low Rates

We are going through dramatic shifts in the economy and interest rates are the lowest they’ve ever been. Regardless of your personal political views, it is safe to say the current trend of economic change is not likely to slow any time soon. On the home mortgage front, there are a lot of people purchasing and refinancing, and there remains a large number of houses on the market at much lower prices than a few years ago. Whether you are buying a new house, taking advantage of the market and investing, or refinancing your existing home, you need a mortgage. This blog is dedicated to highlighting the prime position Intercoastal Mortgage Company is in to best serve the needs of individuals taking advantage of these amazing rates.

Consider the advantages of going with a smaller mortgage company such as ICMTG.

§   We are lenders, not brokers; and we hire only the best and most experienced

§   We are not a single banking entity

§   We provide the best and broadest product variety

§   We are a local lender

§   Our place in the community

Our mortgage loans are processed, underwritten, closed, and funded in-house. We make the loan decision. We are accountable for the entire process from beginning to end. As a result your transaction will go smoothly and your closing should be on time. While we are mortgage lenders, we are not limited to one bank’s mortgage products. Not only does this allow us to remain competitively priced, but to offer a wide range of products to suit all of our borrower’s needs. Our product line is exceptional, constantly updating our products to meet the changing needs or our valued customers. Whether you are a 1^st time homebuyer or an experienced homeowner, Intercoastal has the product and program to suit your needs. We understand our local market and we are housed right here in Northern Virginia. This means direct access to the underwriting and closing department, which allows us to provide prompt, full approvals without surprises. Need a quick closing? No problem!

Intercoastal is listed as one of the top 25 lenders in the Washington Post and Washington Business Journal. We have built a reputation as a reliable, professional and innovative company. We pride ourselves on delivering quality mortgage products and services while helping our valued customers realize their American dream.

Trust, efficiency, reliability, and experience play the most important roles in the mortgage process. Developing a rapport with your home buying professionals is a crucial aspect of a successful home buying experience; as it allows for a customized mortgage to fit specific needs and budget. Contact me for only the bestmortgage lending and obtain the house you’ve been dreaming of.

Closing Your Loan

If you’re in the process of obtaining a mortgage loan then you are probably interested in getting to closing as quickly and efficiently as possible.  In previous blogs we have discussed how to get to closing; what you need to have and what you can expect through the process, but what happens when you get to the finish line? Your application for a mortgage loan has been approved and you have received a commitment letter from us. The final step before you can call the house your own is the closing, or settlement, of the purchase transaction and mortgage loan. You will have to sign a purchase agreement and your loan request will be approved, but you still have no rights to the property, including access, until the legal title to the property is transferred to you and loan is closed. You should have an understanding of what is involved in the closing process, and here I discuss what you need to do to finish up this process.

When you get to closing, you will sign the necessary documents, the seller will transfer the deed to the property, funds will be collected and disbursed and the closing agent will record the necessary instruments to give you legal ownership of the property. Settlement of a mortgage loan is a legal process, so specific procedures and requirements will vary according to state and local laws. This information applies to closing practices in our area.

As soon as you receive firm approval from us, the lender handling your loan, you will want to confirm the actual date of loan closing. An estimated closing date was probably specified in the sale contract, but a firm date needs to be set by your agent.  The loan closing date will include representation, either in person or through documentation, of all the necessary parties - the buyer, the seller of the property, the party’s agents, the title company, and your lender. Your loan commitment can expire, as can the rate lock agreement, so the settlement date should be set with that in mind.  The settlement date also has to allow adequate time to assemble all of the required documentation. The real estate agents involved in the sale transaction and the lender are often the best people to coordinate the closing arrangements, since they are the most knowledgable and experienced in this area. Most lenders require at least three to five days advance notice of the closing date in order to prepare the loan documents and get them to the closing agent.

Examples of documents that may be required for closing:

• ·         Title Insurance Policy
• ·         Termite Inspection and Certification
• ·         Survey or Plot Plan
• ·         Water and Sewer Certification
• ·         Homeowner’s Insurance
• ·         Flood Insurance
• ·         Certificate of Occupancy or Building Code Compliance Letter

Closing your home loan is a standard process in home ownership, but it there are variances for individual situations. Your process may be shorter or longer than your neighbors and this could be due to the documents needed, the seller’s specifications, the house’s necessary repairs, and your financial agreement. Contact me for only the highest quality lending and begin the process of homeownership.