I believe we have FINALLY found the dealer/contractor for our land home purchase. He seems very knowledgable and has been selling and placing these homes for 30 years. Now that we have almost completed the "option pick out" process....and boy is that a process...we are waiting for final pricing. No doubt we will eliminate a few options once that comes in
What I have a question about is this...This contractor says we would be better off financially if we opt out of the construction loan process. Meaning that instead of getting a construction to permanent loan we place our down payment...say $10,000 to $15,000 in an escrow to which he and we can borrow against for site prep, garage, home etc. (or place our land deed in escrow and borrow against that)
which would eliminate the extra points paid on a construction loan. Then when everything is complete we get financing on the home/land package. Does this make sense to anyone? When it comes to finance...hubby and I are pretty illiterate. I know that we will be paying the loan people about $6000 for loan fees for the construction loan, which seemed rather high, plus we will have to pay the interest on all money borrowed during construction process. This other way would eliminate the interest fees and apparently lower the loan fees as well. He says it is done this way often and the escrow people are familiar with this. Does anyone have any advice??? We could really use some!
Thanks in advance
Melissa