Spreading the Word About the One-Time Closing Construction Product
Home buyers can now take advantage of the One-Time Close (OTC) Construction to loan, which is designed to simplify home building and the process of home financing. Home buyers can now get financing for the lot purchase, permanent mortgage, and construction. OTC loans can help open up new opportunities for home buyers and mortgage professionals alike. Here are a few ways you can spread the word about OTC Construction to Permanent loan solutions.
Mention it to your clients who are getting prequalified
Take the time to mention the idea to homebuyers who are looking to get prequalified or preapproved. Try explaining to them that they can use this OTC program to find an existing home they will love. The process usually involves a lot of closing and phases. The OTC loan, however, rolls all of these financing aspects into a single-close loan.
Share the OTC loan program information with real estate agents
Real estate agents always have more direct and frequent contact with the borrowers. This makes more sense to want to keep them in the loop with what the program offers. It is, therefore, important that you tell the agent everything you know about the benefits of the program.
Send information to the lot owners
OTC borrowers can already own a lot and just finance the permanent mortgage and construction. Research who is sitting on vacant residential lots in your service area and market the information to those people. Landowners might have been reluctant to build for a variety of reasons such as waiting for the means to finance construction or the permanent mortgage. Eligible borrowers could get a single-close loan to finance both the permanent mortgage and construction of a new home with the OTC loan.
Share the details of the OTC program with the home builders
It’s important to connect with real estate agents in the area. But you should also make sure to share information on your one-time close loans with the home builders. Similar to real estate agents, home builders could have contact with potential borrowers as well as other professionals in the industry. Ultimately, it’s better to have more people know about this program.
How One-Time Close Construction to Permanent Loans from AFR Wholesale Can Be Beneficial
Below is a summary of the key benefits for OTC loans. You can share this information with your network of real estate professionals, borrowers and home builders:
The interest rate risk is reduced – An OTC loan lets you lock in prior to the single closing and before construction begins. This is better than waiting until the close of the construction phase to lock in a rate for the permanent mortgage. Since we all know that rates fluctuate from day to day, it could provide peace of mind and rate security to your borrowers.
It has lower expenses – One set of closing costs and one appraisal means a reduction in expenses. This makes the OTC loan a more affordable and attractive option for new construction homes.
There are zero payments during construction – this is a very attractive feature for home buyers. Although the final financing phase is already in place when construction starts, the home buyers do not have to make payments on the loan until the house is complete. This frees up funds for different housing arrangements, making the whole home building process much more doable in terms of cost.
No need for requalification – Prior to the builders breaking ground, the closing is complete and there is no need for the buyers to be requalified at the end of the construction phase. This removes concern that the appraisal may expire or that problems can come up unexpectedly during the underwriting process.
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