Why finance the building or remodeling of your home with Catlin Bank?
You are working with a local bank—pardon the pun, but we are in your backyard!! Our staff is accessible in person, on site, and just a local phone call away. No foreign 800 #, No press 1 for ?, No long waits for service.
Process Manager—The bank makes two loans. The first is for the construction. It is less than the full amount of the contract you have signed with the builder. When the home is complete your second loan, a 30 year fixed interest rate permanent mortgage loan, is closed to pay off your construction loan, pay the remainder on the builder’s contract, and provide your closing costs.
Coordinated closing—many detail precede the closing of your permanent mortgage. It starts with the builder’s contract. The bank manages, obtaining lien waivers, establishing adequate insurance amounts for both the builder and borrower, reviewing change orders, and overseeing government loan requirements--such as a certified foundation inspection. All of this provides for smooth and timely closing of your permanent mortgage.
Risk Management—the bank wants to be certain that the project will proceed as expected, but if it does not that there is some form of damage control in place. It starts with the builder—can he/she perform? Who are the subs? How are the builder’s finances? Insurance is critical in this process. The builder must carry liability insurance to protect you. You must have a builder’s risk policy during the construction phase. If you are building a manufactured home, transportation insurance is important. Do you have enough life insurance to complete the home for the surviving spouse?
Construction Redflags—we have learned the vast majority of Red Flags in building just under 500 homes. Site visits, conversations with you, and builder’s payment requests are the tipoffs to protecting your home. Our staff will intervene quickly upon hearing or seeing a Red Flag.
Call us and ask for the
Construction Loan Department