Mortgage Question

[csilvasy]

We used a mortgage broker recommended by the dealer we purchased our home from with used our land as a down payment on a home that we placed on a crawl space. Our mortgage was to be a construction at 9.25% to a fixed 30 year at 7.25%, with a ONE TIME CLOSING. Now 3 months after we have received our occupancy permit our broker is telling us we have to re-submit pay stubs, bank records and the bank will check our credit again in order to move our loan out of the construction phase to the fixed 30 year rate. Is this regular practice? We were lead to believe that the loan would automatically revert to the regular 30 year fixed mortgage with no other paperwork involved!

[rmurray]

There is probably some small clause that allows the bank to recheck credit,which gives them a chance to see if you have gone straight down hill..This will allow them to see that you are still employed..have not taken on lots more debt anf not in recent trouble with the IRS..Credit rechecks are very common..Get the requested paperwork without delay....

[rmurray]

...Read your loan paperwork and look for a float down option...The 7.25% is a little high right now..Often you have the right to float down to the current rate...A friend just locked a 5.675%, 30 year fixed rate with Wacovia last week on his modular..He is still 30 days from the conversion..Most l3enders are 1/2% higher on manufactured than they are on mods...