So our first bank called yesterday and said "If we are to loan you money to build the house you are going to have to put $20,000 down." WHAT!!!!!!!!!! Basically because we haven't owned the land for a year, so there isn't enough equity making them want a down payment. This is after waiting for 2.5 weeks and not hearing anything. So he pointed us in the direction of another bank who will do just the construction loan and then go back to them for the long term financing.
After calling around we found another local bank that will lend us the money without a down payment because he said "August is close enough to a year for him." (that will be a year since be bought the land). I love working with smaller businesses!
Here's the list of things we were told to bring to the bank tomorrow in case people don't know what's needed when going to the bank for a construction loan:
1. 07 & 08 taxes
2. Current pay stubs
3. Who your Insurance will be through
4. What title company you want to use (best to use who you went through to buy the property)
5. Filled out loan application (job and money info)
6. Sign all disclosures
7. House plans
8. Cost break down
9. Resume (letter) of how you are qualified to General the house your selves
I looked into "Course of Construction/Home Insurance"- it was a little intimidating at first- but only a little more complicated than car insurance- shopping around makes a difference. We're looking at about $360 a year for home insurance guestimating the house is worth around $100,000. So that's what I learned today.
It would be so awesome if we had a loan by the end of the next week! Probably still looking at another two though.
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