Construction / Permanent financing: Q&A with Norma Toms
Published on 6/23/2017 • Share on facebook opens new window
- Q: Construction-to-permanent loans are getting a lot of attention lately. Why is this a timely subject?
- NT: There are a lot of advantages to a construction-to-permanent loan instead of separate loans, but it's especially advantageous when interest rates are low.
- Q: Do all lenders offer this option?
- NT: Some lenders may not offer it. What's even more important, though, is the kind of service you're getting with the loan. One of the main advantages of a construction-to-permanent loan is simplifying the process. When you do that with us, we're already known for a streamlined process and fast turnaround on construction and permanent loans. Put the two together and we can really shine—and you definitely want to check out our rates.
- Q: How does a construction-to-permanent loan save time over having separate loans?
- NT: We share information between the in-bank lender for construction loans and Red River Bank Mortgage for the permanent. Our customer doesn't have to duplicate information and processes—we handle it start-to-finish.
- Q: Just as an overview, how does this type of loan work?
- NT: We handle the construction loan and pay the builder in draws as construction progresses. I keep an eye on that and when we get within 45 days of completion, I get back with the customer and lock a rate in for the permanent loan. When construction is finished, we pay off the bank for the construction loan and turn that into their long term mortgage.
- Q: What's the first step to take when considering a construction-to-permanent loan vs. separate loans?
- NT: Come in and talk to us!