This is based on calendar days and not business days. This time line is not an agreement or guarantee but should be used as an approximation.
Day 1: Pre-qualify for loan
* We make sure your credit rating, employment, and your investment portfolio meet the criteria of the lender.
Day 2-10: Contact with your real estate agent
* After speaking with your Realtor he/she will obtain and execute a lot contract between the buyer (you the client) and the seller of the lot in your desired area of interest.
Day 11: Information is relayed
* This information is passed along to our lender and the process of obtaining your pre-construction loan starts.
Day 11-15: The homebuilder will assign a contract
* Your realtor will execute the builder agreement between the buyer (you the client) and the homebuilder.
* House contract and lot contract will be provided to the lender so lender can begin putting together the “firm numbers.”
Title is ordered
* Appraisal is ordered and the buyer (you the client) are required to send in a check, money order, or certified funds made payable to the appraisal firm.
Day 16-17: Preliminary Paperwork is sent
* Realtor will finalize the paperwork to be sent to you. This package is PRELIMINARY ONLY, and includes:
- Your Home Builder contract ($500 Builders Deposit may be required paid to the builder)
- Your PRELIMINARY loan paperwork
- Your Pre-Construction LENDER paperwork
Day 18-23: Waiting for return Preliminary Package from you (buyer)
Please remember it is very crucial to send paperwork back as soon as possible as “time is of the essence”. We do not want to hold up the process of your preconstruction opportunity!
Day 23-25: Preparing loan for Lender
* Your Mortgage Broker will finalize the loan to be turned into Loan Processing (once you have sent back all of the proper documents required).
Day 25-29: In Loan Processing
* Loan is in Processing, being prepared for submission to lender.
Day 30: Sent to Lender
* Loan is sent to lender and awaits finalt approval.
Day 30-40: In Underwriting
* Lender underwrites the file, and issues an approval with any stipulations if needed
Day 40-45: Stipulations and preparing for closing
* The Mortgage Broker clears any remaining stipulations and will schedule a closing.
Day 45: Closing package is sent to the buyer (you) & the seller from Title Company
* Day 45 sent to you
* Day 47 sent back by buyer (again “time is of the essence” and it is very important to sign, notarize, and return these documents within 5 business days)
* Day 50 funded by title company
Day 50-60: Copies Sent
* Title company makes copies of your paperwork, and sends a copy to you, and the county for recording.
Day 65-365: Loan is in Pre-Construction phase.
* PERMITTING: Builder will start process by applying for permits which take 4-8 weeks in most cases. After permitting approval, the construction will begin on your new real estate investment property.
* Builder makes payments on your behalf (there is an alotted amount for these payments built into each loan which is referrd to as an “ interest reserve account”)
* These are interest only payments based on the 5 Draws taken by the builder during the construction phase
* The build out time is normally 8-10 months.
Day 245+: Your Realtor will start to market your house (either resell or rental) for you by listing and advertising your property in each area via MLS listing, WEB marketing, and/or local real estate advertising publications. Please discuss your exit strategy with your Realtor prior to completion of home.
Day 365+: If the house is not completed yet, the builder will ask for an extension, which the lender grants. Extensions are given in 3-6 month increments.
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