Mortgage Question. Why the small loan amount and add it to a later date?

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Can a mortgage company to tell you, sir, thank you for your property is worth 130 000 USD darauf.Wir without a home, we will not go for $ 129,000 Hypothek.Wir to give you everything einmal.Sir , a home for a charge of $ 85.000Sir, we give you $ 75,000 loan and if you need more if you need more, we will perform new Papierkram.Oh, you need more, we do 90,000 . Papierkram.Oh again, you have to pay more on the people of cement, fine, $ 95,000 and new Papiere.Sir, you will soon be closed? Who hasen’t been paid? How? We’ll help you give exactly that. Allright final documents for a final amount of the loan, $ 105.000.Ist this evil? I do not like it. They should have given it the largest loan, they said, and keep the bad stress need to meet people escow money that was not there …. AWAY.Wer pay to make money is suspended by the filing of new documents for new loans. 3-4 times in the past 2 months? Or why they do it? They did this to my father. I think that’s wrong. Am I right? Ok … I do not think you understand, then … My father is old. He received a pre-buildt delivered and installed. Am I the only one who knows how this could be the problem? Enter the estimated amount. Then plug it in and let the man do what he wants with the rest. This is a loan and repaying it. Maybe he needs a garage or patio! Or stairs to go inside.

3 Comments
  1. Reply
    Mark C
    May 3, 2011 at 12:15 am

    What you are referring to are called ‘draws’. The bank wants to make sure they did not loan $ 105,000 on a property that is not finished or when tradespeople are still owed for the work.

    You have to think of this from the bank’s view, they do not want a house that they have to finish building, or not have enough money to finish, if something went wrong with your dad.

  2. Reply
    Lady K
    May 3, 2011 at 12:25 am

    Are you sure this isn’t a construction loan you are talking about? Go to banker who ‘knows’ what s/he is talking about. To find one ask family and friends if they know everyone. This person doesn’t sound like they are giving you all the facts. Good luck!

  3. Reply
    loanmasterone
    May 3, 2011 at 1:02 am

    Most construction loans are issued out in normally 3-4 increments and always through an escrow.

    The construction company tell you the amount needed to start and what they will accomplish with that amount as well as the time frame in which they will work.

    Once this work is done they have to then bring proof to the escrow closing agent after which they again tell what they need and what they will accomplish doing this phase.

    The construction company continue doing this until the project is complete.

    The city inspect each phase and pass each phase or tell them what is needed to insure passage.

    When the project is complete the city issue a certificate of occupancy.

    This is the normal way a construction loan goes, you only complete one loan application.

    All the paper work is done because the construction company gives a concrete price on cost and completion times.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

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