Construction Loan Question

trswyoAugust 5, 2014

I am not using a Realtor for my new home construction. I own the land and have an executed contract with the builder who will be taking out the construction loan. I know construction loans are not subject to RESPA, however I was curious if I should receive some type of settlement statement or equivalent.

I just don't want to hand over a 10% down payment check with out a little more paper comfort.

Thank you for reporting this comment. Undo
PRO
Sophie Wheeler

If you can't trust your builder with 10% of the funds, then you picked the wrong builder. Or maybe he picked the wrong client.

    Bookmark   August 5, 2014 at 8:34PM
Thank you for reporting this comment. Undo
robin0919

Have an attorney ck out the contract. Have you already 'signed' the contract without this being done first?

    Bookmark   August 5, 2014 at 10:39PM
Thank you for reporting this comment. Undo
kirkhall

Don't give him cash, but you'll have a cleared check as "proof". Or, ask for a signed receipt if it really bothers you.

    Bookmark   August 6, 2014 at 3:16PM
Thank you for reporting this comment. Undo
MFatt16

Would it be possible to put in an escrow account? Safe for your side and safe for the contractor. I am assuming the GC has some capital to get started.

    Bookmark   August 7, 2014 at 3:35PM
Sign Up to comment
More Discussions
House complete... Moving Friday... Photo tour
Hi all! I thought I would post some pics while the...
Momto3kiddos
It's February 2015- How is your build going?
January was a surprisingly active month! I admire all...
mushcreek
Well Water
For those of you with well water only. What systems...
Renee0829
Dark hardwood vs lighter hardwood floors
I'm trying to decide which type of floors we should...
houserookie
Floorplan review please
I would love to get feedback on this floor plan. The...
boonieshome
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™