Transcription: Colorado Springs Mortgage
They accounted for a 10-foot driveway so things can happen. You put in your plans and specs that you want this kind of tile, this kind of flooring, this kind of stairway or rail, whatever it is, the chimney, the brick, the siding. Whatever those specifications are, are how you’re going to build it and you’re going to have to follow those parameters of your construction lender that’s giving you the loan. You just got to make sure that you’re with somebody that knows what they’re doing. They Colorado Springs Mortgage can put those plans and specs together that you’re building a house that’s reasonable that you can market and sell.
Voice Over: This is stevecurington.com in the Steve ‘N Tyler Show. Go to getkoalified.com.
Steve: Again, we’re talking about getting approved for construction loan. I’ve talked about a little bit of the background of how that looks whether when you’re doing plans and specs and you’re figuring out what house you’re going to build and maybe you and your wife or with an architect and you’re figuring all that stuff out. Now, it comes time to come to a lender and talk to the lender about how you’re going to get your loan, so that the bank that’s going to give you the Colorado Springs Mortgage construction loan typically what will happen is your typical mortgage company isn’t necessarily going to do the construction loan.
They might have a local bank, as we do, that would provide the construction financing and then we would pre-approve you or pre-koalify you, get your income and assets and we give the lender that’s going to do the construction loan with what they call the take out letter. We talked to a builder about this yesterday actually. All this says is that when that house is built, it’s going to take a turn of six, nine, 12 months, whatever you decide on. But when it’s done, that bank or that lender that’s doing the construction doesn’t want a permanent loan for you. This is a short-term financing. This is just to construct the property.
They’re not interested in having your loan for 30 years. I am so I give them a letter that says, “Hey, once this house is built, they qualify. They’ll be able to get their permanent financing and when they get their permanent financing, I’ll be paying you off.” You no longer have that Colorado Springs Mortgage construction loan to that bank because TLC, Total Loan Lending Concepts, will do your loan. They’ll get you your permanent loan which is a 30-year, 15-year, whatever fixed loan that you’re getting and you won’t have that loan with the bank any more on the construction loan. You’ll just have the loan with TLC and we’ll do your 30-year fix.
But they want to know, they want to have your bank that’s doing the construction loan, wants to have the assurance that they’re not going to hold this loan for more than the term of the 12 months. Now, there’s some things are going to– you’re going to finish the house in that time so you got to be diligent, make sure that you’re getting it done because you’re typically on that construction loan. You’re making an interest-only payments on the amount that you’ve drawn on the loan, and they set it for a fixed term so that you don’t take 12 years to build your house.
They want you to build it in a reasonable amount of time because again guys, this is short-term financing. It’s not long-term financing like you get with stevecurrington.com. This is long-term financing so this is a short-term financing. You want to make sure that you can complete Colorado Springs Mortgage the project and complete it in the time that your lender or your bank is giving you. Then, from the lending side for your permanent financing, I’m going to give them those reassurances that, “Hey, they’re good. They’re income’s good. They’re credit’s good. Everything is good.”
When this house is built, Steve is going to come in and give them a loan and this is really going to work not even though you just built the house. This isn’t going to work as a purchase. This is going to be a refinance because you already a loan on the property. I’m refinancing that loan. I’m paying it off with your permanent loan. I’m going to give this– someone might call it as they say in our little book that we go off it says, “The commitment letter from Steve Currington to your construction lender and your construction lender is going to have that assurance that when it’s done, I’m going to be able to provide the financing.”
Now, what you got to make sure that you don’t do because this happens and I’m sure you wouldn’t do this but some people do. Here’s what happens, maybe you
don’t make some payments on some credit cards or something while you’re in the construction period. That’s not going to be good for you because if your credit, income, assets, any of that changes during that time, you’re going to risk not being able to get qualified once the house is built. You have to make sure that you’re maintaining your credit, your bills. You make your payments. If there’s a time in your life to make sure you don’t miss a payment, it’s going to be during this 12-month construction period.
Because the last thing you would want to do is drastically change your credit or your income, quit your job, change jobs, something like that happen in the middle of construction. When it does come time for the house to be completed, I can’t give you a loan. Make sure that none of the items that we koalified you on change during– and if it does, don’t try to hide it from your lender because stevecurrington.com will find it out. I’m telling you, I’m going to find out and then you’ll get the loud mean screaming koala in New Year, like that screaming koala. Let’s listen to some music, break up the monotony people.
Steve: Listen to this. If you get a construction loan and then you mess up your credit, I’m not giving you a loan. Then, guess what? The lender that did the construction loan is going to be duped at you because you’re going to have a loan that you can’t pay off. They’re not going to want to Colorado Springs Mortgage extend it, so then guess what happens? They’re going to own that house. They’re going to come in and tell you that, “Thank you very much for building this beautiful home. Now, get out.” Just make sure you’re maintaining all your credit, income, all that stuff that needs to happen during the construction period.
Otherwise, you might be in a world of hurt, people. You might be in a world of hurt. What do you think about that? That’s a little Prince for you talking about construction loans. That’s the gist of it, guys. Remember, “I’m getting approved for a construction loan. How do I do it?” Listen, we’ll talk at another time about– they have some what they call construction to perm loans where you do it in one loan. Not a lot of people do it that way. There’s some benefits and pros and cons. We won’t get into that now, but just remember talk to a good lender, talk to some of those what we’re talking about.
Call stevecurrington.com. Get on our website, getkoalified.com and we can help you get qualified to do it right and make sure that you set it up properly so that you’re not unhappy when it’s over.
Voice Over: Broadcasting live from the Koala Studios in Tulsa, Oklahoma, you’re listening to the Steve ‘N Tyler Show.