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katie marchione: Basics of Construction Loans - 03/27/08 01:29 PM
How do Construction Loans Work?
A construction loan finances the following:
•1. The land
•2. Land improvements -i.e. clearing, grading, utilities, etc.
•3. Actual construction costs
•4. Finishes to the home - i.e. carpet, appliances, tile, etc.
•5. Architect or engineering fees
•6. Permits
•7. Interest Reserve account to pay your mortgage during construction
•8. Closing costs (in most cases)
A one-time-close construction loan modifies to a permanent mortgage when the home is finished. So, you can finance the initial purchase of the land plus the cost of building your new home. You pay just one set of closing costs and you are only approved once!
Rate and terms can … (0 comments)
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katie marchione: Jewelry, toys, and cars are not liquid assets! - 03/19/08 05:54 PM
Have you ever heard this from a client?
"Well my 2007 Camry is paid off and that's worth about $15,000" or "I have a dune-buggy that I paid cash for last year, can't you state that on the application?"
With guidelines tightening up in recent months, and lenders requiring more assets than ever, I find myself trading these kinds of stories with my co-workers quite often. We laugh about it of course, and then gently tell our clients that they need to sell their toys in order to count.
As funny as we find this, there is an underlying problem here … (0 comments)
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katie marchione: 2008 is the time to BUILD - 02/07/08 03:38 PM
Why you should BUILD in 2008
If you are one of the many people out there who are struggling to make the payment on your vacant lot, listen up! Obviously the market has slowed down, and lots especially aren't selling very quickly.
Have you ever considered building a house on that lot?
Or if you have, maybe it's time to get serious about it!
It's not as hard as some people think! The thought of building yourself can certainly be overwhelming, but there are many systems and people in place to simplify the process. We have multiple general contractors and owner-builder companies to choose from.
There are … (2 comments)
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katie marchione: Zero Down Construction Loan Information - 11/06/07 05:48 PM
ZERO DOWN! Custom Home Construction Loan & Financing
Community First Financial is excited to offer our no money down* construction loan program. This program is designed for primary and 2nd home buyers who want to put limited funds into their custom home project. This program also allows the borrower to use the FUTURE APPRAISED VALUE of the construction loan.
Construction Loan Features:
Use future appraised value No money down 100% financing (including land)* Closing Costs included into the loan 24 hour loan qualification through automated underwriting No payments during construction up to 2 years (not even interest payments)* Primary and Second Homes Full … (3 comments)
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katie marchione: Challenges of a Construction Loan - 10/30/07 06:07 PM
People often ask me why construction loans are so difficult? One would think this is a question a potential client, building their first home, or maybe a Realtor new to the construction arena would ask. Unfortunately this question I get asked most by colleagues in my profession. Loan officers, processors, and senior loan managers are just a few that are confused by construction loans.
Let me give a little insight to why construction loans are very difficult to figure out (even for those in the mortgage profession).
There are more variables to consider.
Is the land already owned? If so when was it bought, how much, and what … (0 comments)
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katie marchione: Construction to Permanent vs. Construction Only - 10/30/07 06:04 PM
What is the difference between "Construction-to-Permanent" and "Construction Only" loan programs?
A C/P or Construction-to-Permanent, also called "One Time Close" is a type of construction loan that rolls directly into your permanent financing once your home has received its Certificate of Occupancy. Typically, the borrower qualifies for the loan to the guidelines of the permanent loan. The borrower can select whatever end loan program that a lender may have in their portfolio (ie. 30 year fix; 3/1, 5/1, 7/1 ARMs, Interest Only, 15 year fix, etc.). The construction period is the riskiest part of the loan. Thus, lenders will charge a … (4 comments)
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katie marchione: Construction Loans 101 - 10/30/07 05:56 PM
What are the reasons people buy resale homes over building thier own custom home?
Tangible product. They can see, smell, and touch the new home they wish to buy. Time line. Most resale homes are available with in 45-60 days. Inventory. Easier to find an existing home rather than a vacant lot. Variables. Building requires: Realtor, land, builder, plans, options, time, patients, vision, trust, etc.... Education. Many customers that build homes invest more time into their "purchase" and at the same time have to educate themselves with land, building and builder.This list can go on all day long, but the theme of the idea is HOW DO WE HELP OUR … (0 comments)
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katie marchione: Super Bowl 2008 Rentals – Any Advice? - 10/16/07 01:55 PM
With the Super Bowl coming here to Glendale in a few months, we have been contemplating renting out one of our investment properties and possibly our primary residence. I have been watching Craigs List recently and the prices to rent a home out here for the week are staggering!
I can't help but think that I don't want to miss out on this opportunity...
Does anyone have any experience with this? Or any tips?
Where is the best place to list your property and how can we best protect ourselves?
Any help / ideas / suggestions would be greatly appreciated!
Thank,
Katie Marchione
… (12 comments)
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katie marchione: Brokers vs. Banks - Pick me first! - 10/11/07 05:57 PM
Lately, I am hearing more and more from realtors and others that they are urging borrowers to go to their local banks for financing. They are telling them to stay away from larger banks and mortgage brokers due to unstable market conditions ( ie: subprime mess, lenders closing )
Now I may be biased, being that I work for a mortgage broker, but I am here today to tell you why you should be ENCOURAGING your borrowers to seek out mortgage brokers:
•1. We work on commission. We are committed to getting your loan done because if it doesn't close, we don't get paid. … (35 comments)
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katie marchione: From Rich Dad to co-owner of Community First Financial - 10/11/07 05:12 PM
Former Rich Dad executive creates opportunity in a down market and educates others how to do the same
2007-10-04 00:15:50 - ( EMAILWIRE.COM, October 03, 2007 ) SCOTTSDALE, Ariz. - This week, the National Association of Home Builders/Wells Fargo index of builder confidence plunged to 20, the lowest it's been since January, 1991. Foreclosures are up. Confidence is down. Buyers are waiting to buy and builders are postponing construction. The National Association of Realtors last week predicted the housing slump would last until 2008, while Moody's Investors Service said the slump might continue into 2009. Hardly a good time to get … (1 comments)
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katie marchione: Is it wise to mix friends and business? - 10/03/07 05:30 PM
Hello, here is the first blog from another new member of Active Rain!
I have been in the mortgage industry since 2003 and I am a Loan Coordinator for our construction loan division at Community First Financial. Whenever the opportunity arises, I like to originate my own loans as well.
So I thought that I would write my first blog about something I have been wrestling with in my mind quite a bit lately:
Is it worth it to handle your friends and family's loans?
On the one hand, I love being able to help my friends and family. I know that they will … (0 comments)
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Katie Marchione ~ Community First Financial
Scottsdale,
AZ
More about me…
Community First Financial
Address: 7575 E. Redfield Rd. Suite 235, Scottsdale, AZ, 85260
Office Phone: (480) 305-8900 x 315
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