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Construction Loan Question

Posted by trswyo (My Page) on
Tue, Aug 5, 14 at 17:55

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.

Follow-Up Postings:

RE: Construction Loan Question

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.

RE: Construction Loan Question

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

RE: Construction Loan Question

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.

RE: Construction Loan Question

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.

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