Modification to Permanent Loan
The steps to a permanent loan:
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The final draw request is made by the contractor and the Certificate of Occupancy is issued indicating the home is complete.
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The final inspection is received and approved. (This is provided by the original appraiser).
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Verification from the title company that no other liens are attached to the property.
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The final draw is paid by wire.
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You may pay down the balance at this time - doing so will also decrease your minimum monthly payment.
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Call your loan representative to exercise the free float down option for your permanent loan interest rate.
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Once you "hard" lock the interest rate and the final draw has been disbursed, the final loan modification documents will be shipped to the borrower. These documents must be returned to NCM within 5 business days to protect the interest rate.
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There will be a final construction interest bill due and payable at this time as well as verification that taxes are paid and homeowner's insurance is in place and paid.
Escrows for property taxes are not collected at this time. We will begin collecting 1/12th of the annual taxes based on the value of the finished home beginning with the first permanent loan payment. The homebuyer will be required to make up any escrow shortage once the home has been assessed by the local tax authority. Homebuyers will have two options, repayment of any tax shortage can be paid in a lump sum, or spread interest free for up to one year.
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