Construction Lenders whose risk management policy requires uniform and standardized construction loan underwriting procedures. Lender/clients can achieve this goal and obtain efficient scalability with customized underwriting services. The Land Gorilla construction underwriter will subjectively analyze the construction related documents and costs to the lender/clients construction underwriting guidelines and acceptance.
Construction Underwriting Includes
- Review of all construction related costs including prepaids, project equity, builder profit/overhead/supervision, reimbursements, loan closing costs, lot pay off, borrowers contingency and interest reserve. Provide LTV and LTC calculations as it applies with all applicable costs in excel formatted document.
- Provide borrowers required cash to close. Calculation of the required funds to be held in the lenders fund control account known as the “Loan in Process” account or LIP. The loan in process account is the loan amount NET of the loan closing costs, reimbursements, and lot pay off. This amount will be the necessary amount need to hold back for disbursing during the course of construction to complete the house and cover interest payments and contingencies.
- Analysis of the preliminary title report, tract map, plot plan, easements, recorded covenants that might affect the ability to construct the project per the plans and specifications.
- Review analysis of the appraisal, builders acceptance, project review and construction contract for conditioning of any necessary requirements to meet the lender/clients underwriting guidelines and best practices.