Financing Made Easy

CONGRATULATIONS on taking the first step toward realizing your dream of building your new modular home - educating yourself on the financing available!

When building a new home, one of the best programs available today is the construction-perm mortgage, which gives you the construction financing and permanent mortgage with only one approval process and one settlement.

Since not everyone has the same financial needs, the process starts with a call to a lender to determine what the maximum mortgage you qualify for, which gives you a budget to work with when planning and pricing your new home.

The next step in the financial process, is to get approved by the lender. Upon approval, the lender will issue a commitment letter. Since commitment letters are typically good for 120 days, this allows you time to finalize your plans to meet your needs. You will also have the confidence of knowing exactly how much house you can afford and the opportunity to take advantage of the interest rate you are comfortable with.

Submitting your final plans, specifications and contracts to your lender, is the third step. An appraisal will be ordered to confirm the equity in the property. The appraised value of your home will be based on the value of your land, plus the construction costs. After receipt of the completed appraisal, the lender will schedule a settlement with you for signatures. Some closing costs are paid at this time, any liens against the land are paid off, and the construction phase of your home starts.

During the construction phase, the funds will be disbursed according to a pre-determined disbursement schedule (developed by our construction loan department - they will work with you or your builder to determine at what phase construction will be complete). You will be required to make interest-only payments to the lender on the funds that have been disbursed on the loan. Once a final home inspection is completed and a certificate of occupancy is issued, your construction loan is ready to modify into your permanent mortgage.

A modification package is sent to you for signatures on final documents and to pay the balance of your closing costs. Your interest-only payments will no longer be required; instead you will start making your regular monthly mortgage payments and enjoy living in your new modular home.

Let M & T Mortgage Corporation help make your financing process fast and trouble-free.