Jerry Thomas's (constructionloan) Blog

So how do you appraise a home that isn't built yet? This is a question I get quite often when I speak to potential clients about construction loans. The answer is, plans and specs.The appraiser will be given a copy of the legal description for your land, so they will know where you're building. B...

So you have your floor plan, you have your builder, you know what city/township you want to live in, all that's left is to find that perfect lot to build on.First, you need to be realistic about what you can afford and what's going to fit your program and down payment. If you are paying cash for ...

It is so important that you borrow enough money to complete your home. Pretty simple concept, huh? Yet from time to time clients that have already closed on their construction loan call me up and say, "I need more money". Maybe they upgraded an element of their home. Maybe a contractor underestim...

To apply for a construction loan you will need all the documentation that you need for any other type of mortgage application;*Income- Most recent 30 days of pay stubs and last 2 years of W-2's. If you are self employed, write off any income, and/or own any other real estate, add your 2 most rece...

Pole barn homes, container homes, geodesic domes, quonset hut homes, I've had calls about all kinds of odd building types. Unfortunately you can't use the FHA/VA Construction to Perm loan for any of these. The program exists to help build homes that are mainstream, not unique or special. Sorry, n...

As work is completed on your new home inspections will be done by the lender. These inspections are normally performed by the appraiser and are done to confirm that work was completed so funds can be disbursed to the builder (aka "draw").   Several times during the building process your home will...

With the Great Depression not far behind us, I'm taking calls from a number of people that have experienced a bankruptcy. These potential borrowers are going to have to wait 2 years from the date of their discharge to qualify for a FHA or VA loan, 4 years for a conventional. So the first thing yo...

There use to be a time, many years ago, that if you wanted to borrow money to build a home you had to get a construction only loan. Once the home was completed you had to refinance that construction loan into your end or permanent financing. You paid 2 sets of fees, fill out 2 applications, quali...

Sooner or later almost every client I work with asks me, "How much am I pre-approved for?".Please keep in mind that borrowers are pre-approved for a payment, not a loan amount. You might be approved for a $200,000 purchase in a low tax area but get turned down for a $190,000 loan in a high tax ar...

So you checked your credit scores online and you're good to go. You apply for your mortgage and are told that the scores your lender got are significantly different from the ones you got. How could that be?What you may not know is that there are many credit scoring "models". Think about this, you...