Tuesday, 25 May 2010

Handy Tips for Mortgage Originator Offices

Difference between a building loan and additions/alterations to an existing property.

a. Building Loan
A building loan is a home loan used to finance the construction of a dwelling on vacant land, i.e.

1. The client is purchasing the vacant land and wishes to building a dwelling
2. The client owns the vacant land and wishes to build a dwelling
3. The client wishes to switch vacant land and then apply to build a dwelling

The following additional documents will be required:

- Contract
- Approved plans
- Schedule of finishes
- NHBRC certificates

B. Additions/Alterations to an existing property
This is treated as an ordinary loan and could occur in the following instances:

1. The client is purchasing an existing dwelling but wants to also apply for further funds to undertake additions or alterations. As this would then be more than 100% of the purchase price these application must be capture as a further building loan. There must please be a note confirming that this is a further building loan for building alterations / additions

2. The client is undertaking additions/alterations on his existing property that is bonded to Nedbank. This is treated as a normal further loan with our without registration.

The following additional documents will be required:

- Quotes or the contract
- Approved plans if structural changes
- NHBRC certificates
- Schedule of finishes

If the application is approved these funds will be held on retention and the funds paid out as work progresses after registration of the bond.


maryland real estate listings said...

A mortgage originator help potential borrowers in the loan application process, in addition to the application through the system and approved. In many cases, when the request is approved mortgage originator to determine the application processor, which will then perform the next step is to collect the necessary documents and prepare for closing.

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