My construction loan was written at the same time I purchased the lot but didnt make my first withdrawal until five months later. The loan will mature at the end of this month and the drywall wont be finished until end of this week earlier if it ever stops raining. All I lack then is finishing off the interior: trim, fixtures, cabinets and floors. Outside is driveway and landscaping- city water hook-up. All about 75 days away. So far I have only needed about 35% of the total construction loan and should be able to finish needing only about 65% of the construction loan amount. So I am doing pretty good with all the sweat equity I have put in, but that definitly has slowed down the construction process. Anyone have experience getting a construction mortgage extended?
I havent talked to my loan officer about getting a extension, any advice out their on best way to proceed on this, thanks, Roger
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I've extended a couple. It's pretty normal.
Make sure you can show on paper where you are and what will be the continuing costs. It sounds like you are doing OK but are maybe a little optimistic. Time wise, you are about 65% done with 35% of the money, IMO
Paper, Paper, Paper, is what the banks like to see. Include photos of the work completed for the file. Don't let them get any impression you are trying to put anything over on them. Start the process four to six weeks before this loan comes due.
Be prepared and confident with all the answers ahead of time and it's no more scary than a trip to the barbers.
Excellence is its own reward!
"The first rule is to keep an untroubled spirit. The second is to look things in the face and know them for what they are." --Marcus Aurelius
Just did this last week- they mailed me a form to sign and told me to send a check for $75.00. No pictures, no questions. Just give 'em a call and see what they say. Good Luck.
...get an up-north attitude...
A lot of it can depend on who you are with them. Normally , its not a problem , because they really dont have a choice , unless the play isnt fair . If you read your loan papers , you will find that they are obligated to you also. Thats right , obligated by law. I think you are looking at this a little heavy in your favor , but you have done enough it sounds like. I think you are at 50 percent , with 35 spent. Doesnt sound like you have misused the money , so it shouldnt be a problem at all. But you will need to be able to pay the interrest up at the time of the extension. Start fresh.
Tim Mooney