New Construction Loan

[Anonymous]

Hey! I'm sure this has been posted somewhere before... but we are closing on our current house Thursday.. yay! We are doing a new build and signed the contract 5/7. Our file is currently in underwriting.. for those of you who have done new construction.. how does the process usually work with the loan because of how long it is until you actually close? They told us it would take 4.5-5 months until it's finished.. it's a new build in a neighborhood.. and how long did your house take to be built? (Neighborhood) thanks everyone!

[Anonymous]

Sounds like you're building in a new home neighborhood, these are not financed any differently than an existing house aside from the obvious extended time line. You will have another credit pull closer to closing and will have to resubmit documents towards the end so make sure you don't go crazy on spending. Construction times will vary wildly between different builders and types of houses. We are building and our build time is only a little more than 90 days.

[Anonymous]

Agree. You can ask your lender, but some will do another hard pull around 30-60 days before closing to start finalizing your loan package. There's another soft pull that's done within the week before closing to make sure you havent done any big spending. 

[Anonymous]

My lender did another HP when my first credit report expired during the building process.  They did a SP about 3 weeks prior to closing (first Clear to Close), and then one the day before closing (Final Clear to Close).  DO NOT SPEND unnecessarily during the process otherwise it will mess up your DTI and they WILL see it.

My house took right at about 90 days but I was very lucky with weather throughout the process (when it counted anyway).  1545 sq ft fully bricked, 1 story, 3br 2bath, 2 car garage, fence, and full landscaping.

[Anonymous]

Gosh that would be awesome if ours went fast! I drove by today and they finally started grading the lot! Ours is a craftsman style ranch 4 bedroom 3 full bath 2,404 sqft..

We have two car payments 360 & 415 and a loan from foundation work 106 a month. Income is 112k (my husband) I stay home with our two girls. We don't have students loans or credit card debt so all should be good. No big purchasing planned ha!

[MauiMan85297]

Ours is a single level craftsman style home with 1704 SF and it took 5 months.  Wrote the contract in June of 2016 and 2 weeks later they started to dig the ground to start laying plumbing PVC in mid July and we closed on Dec 6th 2016.  All depends on any weather delays but here in AZ it was 115 in summer and 80-90's in the fall and rained only once in the 5 month build.

[Anonymous]

We do our final walkthru on Wednesday, we started in January late December they told us 5-6 months. 4000 sq ft in Houston. 10 more days!!!

[Anonymous]

Sold/closed on our house yesterday. Went and removed the contingency off of our new house. Just waiting until September now. Our loan is in underwriting still. Fingers crossed for another smooth transaction.

[Mike2]

Havent started contract process yet, what was your initial score & DTI your LO pulled?  Did you put anything down on contract signing?  What was total cost--Down&Closing?

[Anonymous]

731 middle score. We put a good faith deposit of 2500 down and once we closed, we put down 5000 (half of upgrades). 11% DTI. (We'd been preparing for this for awhile).