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BOO. I'm the person who started the thread..... but it seems to have gone off on a tangent. I'm looking for any advice on CONSTRUCTION PERM loans, specifically. I belong to a credit union, but unfortunately, they don't offer them. Am caught between BB&T and Suntrust. Anyone with DIRECT experience with this type of loan, and your experiences? Thanks
I just became familiar with a philosoply---strategy which is used in Australia commonly that just makes sence for paying off mortgages very quickly and saving people bundles in interest,
Don't let the mortgage Company bleed you to death on interest
No offense but as a mortgage professional I have thoroughly investigated this program and it is not as advantageous as you might think. If the lender would agree to lock the rate long term then maybe. IMO you are better off making money vs saving it. I recommend to most of my clients that they secure a fixed rate unless it is a special situation (jumbo loan and the borrower will be getting a huge pay increase in the near future and can pay down the principal balance to conforming as 1 example).
Take the money you save and invest it in tax deferred retirement accounts. If you have maxed out all of your tax deferred accounts year after year and are debt free then perhaps this loan might be attractive.
Personally I think it is a sham.
BOO. I'm the person who started the thread..... but it seems to have gone off on a tangent. I'm looking for any advice on CONSTRUCTION PERM loans, specifically. I belong to a credit union, but unfortunately, they don't offer them. Am caught between BB&T and Suntrust. Anyone with DIRECT experience with this type of loan, and your experiences? Thanks
Its been a while since I have done one and many lenders no longer offer it, but it is a good product as it saves you fees and paperwork over buying the land, taking a construction loan and then getting permanent financing when its complete.
The main thing is to make sure the person you are working with understands the program. There is a long process and the contractors you work with need to be on schedule and on budget or it can be a mess. As long as you are patient and do a lot of the homework you should be fine. Remember setbacks will happen no matter what, the important part is that everyone has the experience to deal with them.
I have worked with SunTrust on many transactions and their underwriting and terms are very fair. Do you have any specific questions about the process?
This may be a bit of a delayed response, but I wanted to say that we had a wonderful realtor who helped us when we moved. To wrxsti04: you had a bad experience, but there are really great realtors out there. Ours was not a bigwig, but she was one of the best. Her specialty was new construction, and she actually knew homes, communities and even floorplans from as far as 5 years back. She listened carefully to what we wanted and showed us exactly the kind of homes we asked for. She also had great memory - after seeing dozens of houses, she could remember exactly which homes we liked, and also what features we saw in each that we liked. She never pressured us to buy, but showed us all options and let us decide.
As far as mortgage programs, realtors are not really the people to consult, as they are not educated in mortgages very extensively in real estate school. Mortgage lenders can help you better. Our realtor gave us different mortgage lenders to check with. We shopped different programs and then finally selected the program that worked for us best.
Anyway, I have only very good things to say about realtors. They work really hard. Buyers don't pay them any commission but they help them 200%! They are really really patient! Anyway, thanks to all the wonderful realtors out here, there are lots of us who apppreciate you!
I was wondering if you would be willing to share your realtor's information via a PM?
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They work really hard. Buyers don't pay them any commission but they help them 200%! They are really really patient! Anyway, thanks to all the wonderful realtors out here, there are lots of us who apppreciate you!
