Custom home new construction loan process

Marshall Sparkman discusses the process of building your dream home.
If you are ready to start the process, please set a time for us to chat https://calendly.com/sparkmanteam/15min
Marshall Sparkman
NMLS #167461
615.278.2801
marshall@valoanstn.com
https://www.franklinsynergybank.com/banker/marshall-sparkman/

2020 New construction loan process
Simplified version
1. Pick floor plans
a. Online is best, fastest, cheapest
b. Local architect
i. Plan on spending $3,000 – $5,000
ii. 1-3 months
2. Meet with builder to discuss feasibility.
a. Get rough idea on cost
b. Is it feasible on your budget?
c. Is it feasible on your lot if you already have one?
3. Identify lot
a. Estimate cost to develop lot
b. Feasibility study
c. Septic site?
i. Plan on a lengthy process if not one
d. Lot loans
i. Rates currently 5.5% - 6.5% depending on length of time
ii. Better rates with shorter terms
4. Construction loan
a. Complete loan application and provide all required documentation to the bank
b. 1st we will approve you for the permanent mortgage before giving you a temp. loan
c. Very important not to change your financial status during the process.
i. See Do’s & Don’ts checklist
d. We meet and get rough numbers on how much it will cost
e. We will take plans, specs, cost, + land and have it appraised
i. 80% of appraised value up to 100% of cost
1. $1M appraisal
2. We loan up to $800 to build
ii. If something pops up and more money is needed, we can negotiate that but it’s not the preferred method
f. 30ish days to close
g. 5.5%ish rates - Interest only – 12 months
h. Some will need down payment, some will not
i. If DP required, funds typically used towards 1st draw
1st draw is usually the largest (site prep, rough drive, excavation, footers, foundation framing package, builders fees, labor)
j. Rule of thumb: average payment is 60% of fully drawn amount
5. Plan on it taking 4-8 months.
a. Never make concrete plans based on a certain closing date
6. Do not make any changes once you pick your plans
a. They cost a ton of money
b. Makes the process extremely stressful
7. Enjoy the process
a. if you are one to freak out easily, you will need to hide your ugly lol
8. Expect big setbacks –
a. Happens 100% of the time
b. its all normal and a part of the process.

Видео Custom home new construction loan process канала Marshall Sparkman - VA Loan Expert