FAQ Category: Construction Mortgage
Who is People Driven Credit Union’s Mortgage Specialist?
Meet Our PDCU Mortgage Specialist Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs. Michelle Dzon Member First...
Continue ReadingWhat happens if construction costs exceed the loan amount?
If construction costs exceed the loan amount, you will be responsible for covering the additional expenses. It’s crucial to have a detailed budget and contingency plan to avoid running short on funds during...
Continue ReadingHow are construction loan interest rates determined?
Due to the increased risk involved, interest rates for construction loans are generally higher than for traditional mortgages. Rates can be variable or fixed and are determined based on your credit profile, loan amount, and market...
Continue ReadingWhat are the eligibility requirements for a construction loan?
Eligibility requirements can vary but typically include a good credit score, a stable income, a detailed construction plan, and a contract with a licensed builder. Some lenders may also require a down...
Continue ReadingWhat can I use a construction loan for?
Construction loans can be used to cover the costs associated with building a new home. This includes land purchase (if not already owned), construction materials, labor, permits, and other related...
Continue ReadingWhat are the benefits of a one-time close construction loan?
A one-time close construction loan combines your construction financing and permanent mortgage into a single loan. You only have to go through the closing process once, saving you time and money on additional closing costs and...
Continue ReadingHow does a construction loan work?
Construction loans provide funds in stages as your home is being built. These funds are disbursed to your builder based on a pre-agreed schedule, often called "draws." During construction, you typically make interest-only payments on the disbursed...
Continue ReadingWhat is a construction mortgage loan?
A construction mortgage loan is a type of loan specifically designed to finance the construction of a new home. It typically involves two phases: the construction phase, where the loan funds the building process, and the permanent mortgage phase, where...
Continue ReadingWhat documents do I need to apply for a mortgage?
To apply for a mortgage, you will need to provide the following documents to verify your identity, income, assets, and employment. Required Documents & Why They are Needed Copy of your driver’s license or state-issued ID – Verifies your...
Continue ReadingHow do I check the status of my loan application?
How do I check my loan application status at People Driven Credit Union? You can check your loan application status by contacting People Driven Credit Union or your assigned loan specialist. Many members ask how do I check my loan application status...
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