Looking for information on mortgages, which allow us to build our original contractor.?

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We already have our own land and want to build a home using sub-contractors, of course, the things we have no experience. I do not want to sound like an idiot when I call or meet a mortgage company to get there. Anyone know a good company to go to this type of loan? Or even a loan that would be? Thank you for any info you can give me!

3 Comments
  1. Reply
    bud68
    February 23, 2011 at 9:02 am

    You need a construction loan rather than a mortgage per se.

  2. Reply
    saeed q
    February 23, 2011 at 9:54 am

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    Do not give anyone else your personal info without seeing them in person.

    Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
    A lot people giving advice on here are also looking to give you a loan (it’s not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON’T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.

    Remember Buddha’s advice:
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    When shopping for a mortgage, here are a few things to do to maximize your savings and time:
    1. When asking for a Good Faith Estimate(GFE), tell each mortgage originator (lender) what interest rate to use so you can compare apples to apples (rate affects closing costs). This is probably a different thought process for you because you always shop interest rates on a mortgage right? Remember all mortgage originators have identical wholesale interest rates. If you shop the same interest rate among mortgage originators, it levels the playing field and discloses what they want to charge you for their time to originate and close your mortgage. It is similar to shopping for a car. Why does the exact same new car vary in cost from one dealership to the next? Some dealers want to make more profit than others.
    2. Secure Good Faith Estimates from various mortgage originators within a 4 hour time frame (rate and pricing can change daily and even multiple times in one day).
    3. Do not compare the prepaids, reserves, escrow, title charges, and government recording sections of the estimates; third part fees are not controlled by the mortgage originator.
    4. Ask each mortgage originator to base the interest rate on a 30 day lock unless you need longer.
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    6. If refinancing, let the mortgage originators know if you are pulling cash out. A cash-out refinance usually increases closing costs.
    Your Biggest Challenge
    The mortgage industry today has never been more unethical. The industry has produced several record-breaking years in a row regarding total origination and as a result, greed is driving the industry. Your biggest challenge is receiving a Good Faith Estimate that is provided to you in “Good Faith”! We spend more time showing consumers how mortgage originators are lying to them in regards to an estimate given! That’s right, lying! “Bait and switch” has become a prominent sales tool in the mortgage industry. Bait you in with a bogus estimate then switch things after you are hooked. This is so discouraging; banks and so called direct lenders have become some of the worst at this practice. Education is your biggest weapon against this practice. Take the time to fully understand closing costs and rates before proceeding.
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  3. Reply
    Dawni Do Right
    February 23, 2011 at 10:00 am

    All-In-One Construction loan. It’s a loan for construction & after certificate of occupancy is issued, it converts to a home loan. Probably less costly than one loan for construction, then another loan after construction is complete.

    You have a good equity position since you already own your land outright unencombered.

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