Construction Loan Question

axeman462

Guru
1000 Post Club
2,655
Florida
I am in the process of building a house, and have a construction loan for it.

The house is almost done being built, and we are currently paying the interest payments on it. We are looking to modify the loan to a permanent loan in a few weeks.

Our problem is we finding that the bank misrepresented many costs to us when selling us the loan. We do not want to continue doing business with them anymore.

Is it possible to do the loan modification with another bank? Or will we have to wait until after the modification and hen refinance with another company?
 
When you say modification, do you mean making the change from a construction loan to permanent financing? If so, then yes as @adjusterjack mentioned, there should be nothing that would prevent you from going through another lender for this.

Out of curiosity, what costs did they misrepresent to you? I love to keep a laundry list of these as precautionary tails for my clients. This type of thing is unknowingly and unfortunately rather rampant within the industry.
 
You can definitely do your permanent loan with any lender you choose to payoff the existing construction loan. The only reason there was be a penalty is if you have a prepayment penalty, but I haven't seen one on a construction loan- they want to get paid off. If you need help feel free to reach out.
www.GrandLendingCA.com
 
It will depend on the construction loan you have. Did you do a one time close or two? You may need to move to permanent loan with them, then refi to another lender (which stinks and will cost you more money).
 
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