 |
REQUESTING FUNDS FROM MY CONSTRUCTION LOAN
Refinance your home and take advantage of great rates!
So how do I get my money? you may be asking. Well, construction lenders don't all use the same method for disbursing funds, but
Mouse House Mortgage, your Mortgage Loan Company, Nationwide Mortgage Company: Mouse House Mortgage offers you the best mortgage loan rates for new home buying, home refinance, credit card debt consolidation, and more.
http://www.mouse-house-mortgage.com/this section will explain how funds are disbursed for our Construction-to-Permanent Loan.
This account may be in your name, your builder's name, or it could be a joint account. It's up to you. Funds to pay the costs of construction, the land payoff or purchase, loan reserves and closing costs will be disbursed as idicated in this section.
•• When we fund your Construction-to-Permanent Loan, you'll set up your own checking account
and your disbursement funds will be wired directly to it. ••The Initial Disbursement
The first release of funds happens at the loan closing and is called, not surprisingly, the Initial Disbursement. This disbursement includes the payoff of the lot (or the existing mortgage, if applicable) and all related closing costs. This disbursement will not exceed the amount set aside for closing costs by your loan agent in the Loan Budget Worksheet. Any additional costs must be paid by you at closing, so make sure you've provided accurate lot payoff information to your loan agent. Before or during closing, you'll need to bring all the cash required for your equity or down payment on the project.••After your loan is funded, you can conveniently access your construction loan online - request funds, check balances and the status of a funds request!••
Disbursement of Off-Site Costs
Also referred to as "soft costs," off-site costs include items such as architect's fees and permits. These costs are payable monthly, based upon proof of payment (canceled checks and receipts, for example). Builder overhead/supervision costs are also disbursed to cover your builder's administrative and supervisory costs. These funds are available monthly, based upon the percentage of completion at each draw request.Disbursement of On-Site Costs
Also referred to as "hard costs" or "direct costs", on-site costs are costs associated with labor and materials used in the construction and/or improvements to the property. You'll be asked to provide a copy of your building permit when you request your first draw from this category. Disbursements made for on-site costs are based on the percentage of completion. Percentage of Completion. This method allows a monthly disbursement of funds based on the percentage of completion of the home each month. It is important for all parties to understand the draw schedule chosen and to determine the adequacy of that schedule to the project early on in the process (that is, prior to closing).Be sure to ask your loan administrator about the draw schedules available.
Contingency Account
This money is set aside for any unforeseen circumstances that may occur during the construction or improvement of
a home. Disbursement of these funds is on an "as needed" basis and will generally be in proportion to the completion of the home. Documentation in the form of canceled checks or receipts is required to obtain disbursement of these funds. Because some work must be completed on the home to receive any funds, proper planning is important to keep your construction running smoothly. You'll need to allow two business days for an "off-site" draw request and five business days for an "on-site" draw since "on-site" or direct cost expenses must be verified by an inspection.
Construction Loans: Manufactured Home Financing | Modular Home Financing | Rehab Loans | CTP Loans | Land Loans
FAQ: Where to Build | Planning Your Home | Financing Your Home | Getting Construction Loans
|
