Return to the Building a Home Forum | Post a Follow-Up

 o
Pleasantly Surprised with Loan Underwriting Time

Posted by txaggieinargyle (My Page) on
Wed, Apr 4, 12 at 17:59

Just though I would pass this on. After hearing all the horror stories about mortgages these days I was worried that getting the construction loan setup would take a long time.

All my paperwork got to the bank on 4/2 and they just told me that I should expect to close on or before 4/20. That is less than 3 weeks.

I already owned the land so that probably made it easier. Either way I am happy with the process.

4.25% rate for the construction loan (not a jumbo loan)(Texas)


Follow-Up Postings:

 o
RE: Pleasantly Surprised with Loan Underwriting Time

What a great rate!! Congrats! Looking forward to seeing your progress pics :-)


 o
RE: Pleasantly Surprised with Loan Underwriting Time

Congrats! What part of Texas will you be building in? I'm near Austin.


 o
RE: Pleasantly Surprised with Loan Underwriting Time

DFW area


 o
RE: Pleasantly Surprised with Loan Underwriting Time

Wow great rate. What bank? A local? Im not finding anything under 5% here in central california!


 o
RE: Pleasantly Surprised with Loan Underwriting Time

Yes a local bank. Town Square Mortgage.


 o
RE: Pleasantly Surprised with Loan Underwriting Time

Agentslim - for great rates in California try US Bank, theirs are as low as 3.5!


 o
RE: Pleasantly Surprised with Loan Underwriting Time

Thanks Laura!


 o
RE: Pleasantly Surprised with Loan Underwriting Time

OP sounds like your 4.25% during construction is also 4.25% for the perm?

Did they lock you in already too?

If so, that is similar to our structure.

One rate throughout the life of the C to P.


 o
RE: Pleasantly Surprised with Loan Underwriting Time

No the perm rate if locked in today would be 3.875% but they won't let me lock until 60 days prior to completion.


 o
RE: Pleasantly Surprised with Loan Underwriting Time

Then that is similar to other financing structure we looked at whereby you lock about 60 days out or could buy the lock guarantee for 1 pt now to hold on any upward movement but the construction rate is at prime or even at a higher personal loan rate. Too rich for our blood.

We decided to go with our current lender for 0 points & an APR of 4.1% effectively for the life of the loan from C to P.


 o
RE: Pleasantly Surprised with Loan Underwriting Time

"4.25% rate for the construction loan"

Construction loans are normally held by the originating bank.

They only have to satisfy themselves the risk is acceptable.

Most mortgages are sold into the secondary market.

The buyers there (Freddie, Fannie mainly) have there own rules.
If the bank packages the notes up they can sell bonds backed by the notes, but that usually takes a very large bank to even think about undertaking.


 o
RE: Pleasantly Surprised with Loan Underwriting Time

brickeyee:

This was still the best deal i was able to find. The interim rate is 0.5 to 1.0% better than the other options I found. And their perm rate is really competitive with the open market.


 o
RE: Pleasantly Surprised with Loan Underwriting Time

By perm rates, do you mean that you are locked into those rates for 30 years?


 o
RE: Pleasantly Surprised with Loan Underwriting Time

"By perm rates, do you mean that you are locked into those rates for 30 years?"

Yes. Unless you chose to refinance at some point. If any of us are refinancing for a lower rate in the future that means something went (or continued to go) terribly, terribly wrong!


 o
RE: Pleasantly Surprised with Loan Underwriting Time

Has anyone found a national bank doing decent perm rates? I can't find a local bank in my area (San Francisco Bay) offering this.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Building a Home Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here