Building Series: Draw Mortgages
b'
Building Series: Draw Mortgages
We\\u2019ve all heard about the traditional mortgage. But are you familiar with a better option if building a new construction? In this episode, Natalie and her guests discuss new construction and draw mortgages and how they differ from the everyday side of lending.\\xa0
In a draw mortgage, the dates of funding are different. Standard mortgages start funding the date you take possession of the home. In a draw, the fund starts at certain stages of the build process. Typically, it is your builder who determines the type of mortgage you will need.\\xa0
With a Draw mortgage, once the initial draw funds are at the foundation, the interest rate locks in for you for the entire next year until your home is built. Then the five-year term will start when you have occupancy. Thus,\\xa0 you\\u2019re locking in the mortgage rate for 6 years.\\xa0
If you are thinking of building a home, whether commercial, custom, or private, before even looking at pieces of land you need to talk to your mortgage professional. Get your prequalifying set up and be ready to go. Then, when you find that piece of land, you know exactly what to do to get it because your mortgage professional already knows what you need.
\\u201cAlways be as honest as possible with your mortgage professional as every detail triggers a conversation. Reach out to your professional, build that trust, and be completely open with them.\\u201d
If you\\u2019re withholding information, that could be robbing you of a better opportunity, another product, or a way of keeping you out of trouble. It\'s about having the right conversations and understanding what the ultimate goal is. At the end of the day, do we want to be knee-deep in the trenches of the reno with you? We don\\u2019t need to. We do have to consider all of the risks. Those are the things we need to know about, and the bank wants to be informed of major structural renovations.\\xa0
\\u2014
\\xa0
Enjoying the show? Please give a 5-star rating and review on Apple Podcasts - every review helps others find the podcast!
\\xa0
As a thank you for the review, you\'ll get the first three chapters of my book for free! Post a screenshot of your review on Instagram, tag @nataliemitchell_reinvestor and I\'ll send you the first three chapters of \\u201cInvesting In Her-Self: How A Working Single Mother Created Wealth Through Real Estate and How You Can Too!\\u201d
\\xa0
\\u2014
\\xa0
'