Understanding the Phases of SAFE’s Construction/Permanent Loans
A construction-permanent mortgage is a three phase home loan which allows one to finance the construction of one’s new house. Unlike other forms of the latest construction mortgages, SAFE’s loan lets you lock your rate of interest and close your loan before construction is even started. This will be a one-time closing without the necessity to re-qualify for the permanent stage.
During Construction, disbursement is built to cover the fee to construct, and interest is compensated just in the balance that is outstanding. When construction is complete, the mortgage converts to a permanent home loan. As of this point, planned monthly obligations of concept and interest plus escrows, if applicable, will require impact.
Stage 1: Application/Decision
Through the application/decision phase, you shall utilize a home loan Loan Originator (MLO) to go over your loan options. The MLO will make suggestions through the method from beginning to end. She or he will gather the appropriate documents with disclosures to review and sign from you and provide you. Continue reading “Construction-Permanent Loans”