Who is doing your construction loan?

Yes, we know right now it is more challenging then ever to get high end custom home construction loan done. Banks pulling back and depreciating home values make for an upfront challenge but once it is determined that you can qualify you need to have a loan officer that knows what he/she is doing. It boggles my mind the level of imcompetency in the market. With the recent attrition of mortgage companies and loan officers one would think the ones still in business would be conducting business at a high level. But what I hear from banks and borrowers is that is not the case. Some of the most basic mistakes are happening and can kill your deal. You may be the the most qualified borrower on the planet but if there is a mistake made underwriters are no longer looking the other way or letting something slide. If they detect the slightest inconsistency, at minimum the loan gets declined. At worst, they report the loan officer for fraud to state banking. I understand no one is perfect but in the current market you get one shot to get it right.
How can you avoid these pitfalls? Make sure you know who you are dealing with. Ask for references from past clients. Shop around. See who else is doing construction loans. There are still plenty of banks and brokers capable of getting qualified buyers loans closed. Meet in person with prospective lenders to get a feel for who they are and what they are. Your "gut feeling" is subjective but still a valuable evaluation tool. Pay attention to questions they ask. Most will be to fill out the application but others are to get their arms around the big picture. Do they talk like they know construction loans? Some loan officers are very desperate and will fudge the truth about their expertise. Review the application once completed for accuracy. Make sure your income is accurate. Is your employer or source(s) of income listed? Are your accounts where funds will be verified correct? These are very basic but accuracy is critical.
Now more than ever is the time to protect yourself. Do yourself a favor and be diligent on the front end of the process to give yourself the best chance for an approval.
Please contact me with any questions.
Brad Brown
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8900 Ext 307- office
480-393-8801 - fax
bradbrown@communityfirstfinancial.com
http://www.communityfirstfinancial.com/
http://www.scottsdaleconstructionloans.com/