Modular Home Loans
Steps to Financing a Modular Home
Modular Home Construction Loan Application
The application moves the loan process to being pre-approved for your modular home construction loan and permanent financing. The application gives your banker approval to verify your financials: income; debts and assets. Your loan application and credit report will be forwarded to an underwriter. The underwriter approves the mortgage, request additional information or stipulations or denies the application.
Application - You can apply for your mortgage in person or on line with many banks. After the bank receives your information, they will verify your financials. If you are approved for your loan, the bank will send you disclosure statements - Good Faith Estimates. The disclosure statements for your prefab home loan inform you of the costs involved in originating your construction loan and permanent mortgage.
Good Faith Estimate - Your banker or loan officer will send you an itemized list of estimated costs for your loan. Often banks estimate high rather than low to protect both you and the bank. For example, tax and title insurance information is not given to the lender/loan officer until the borrower's closing agent provides it.
Mortgage Commitment Letter - After all of your documents have been verified and you have signed and returned your truth in lending form, the bank will send you a commitment letter with loan conditions: payments; interest rates, terms and etc for your modular home mortgage.
Closing Conditions - Often banks will add stipulations to your loan prior to closing. They may request additional information such as bank statements, rent or mortgage checks, source of cash to be used for the construction of your modular home, signed contracts with your builder and subcontractors, and any insurances including: homeowners; general liability; workers compensation and flood insurance.
Steps to a Modular Home Construction Loan