Mortgage Brokers And Banks
We went to one of the local banks that has been around Walla Walla for the last 1000 years or so and talked to a loan officer. My wife had gone in the day before and made an appointment and picked up all the fricken paperwork. It took us a couple of hours to get all of our financial history together in one place and fill out all of the appropriate info on the forms. (I would like to suggest here that you take copies of the forms after you fill them out so that you can use them when you are talking to the other 3 or 4 mortgage companies you are going to end up talking to to compare prices and fees.).
One of the main reasons I need to talk to a bunch of different banks and mortgage companies is because some of them won’t let you build your own house unless you’re already a contractor. Others make you use a licensed contractor, no-matter-what, while other will let you do it if you have a contract with a builder to check on your progress and keep you on track. The whole thing is a pain in the ass, but I shall persevere…. Whatever.
I did find out that you need to have “Course of Construction” or “Builders Risk” insurance to build a house. According to the people over at ASK.com, this is what is covered under a “Builder’s Risk” insurance policy:
Builders Risk is temporary insurance with coverage only during the construction or remodeling phase. Once the project is completed a permanent form of property insurance must be purchased.
Probably the most important thing you must understand about Builders Risk Insurance is that it doesn’t include any liability. Liability must be purchased separately.
More later….