Partners in success

Competing in the lending industry can be tough. Online tools and “too good to be true” advertising lead many borrowers to start with lenders who may not offer the products they need. CFS keeps an open door and will work hand in hand with your borrowers toward a painless approval. Our goal is a long-term relationship with you, so you can add interim construction lending to your product portfolio.

The approval process begins with you as the long-term lender: you process the loan and provide CFS the documentation showing the borrower can refinance the construction loan into the long-term mortgage. Along the way, you’re welcome to give the borrower our contact information so we can answer their questions.

For your loan file

1. Obtain a completed application and pull credit. CFS will not pull another credit report; our approval is based on your documents.
2. Add the construction loan to the liabilities for the loan amount the borrower is seeking, and set the loan up as a refinance of the CFS loan.
3. Gather financial documentation, including pay stubs, bank statements, tax returns, W-2s and self-employment P&Ls.
4. Collect the land documents: the purchase contract, land loan payoff or deed, and the survey or plat if available.
5. Receive the builder documents, including floor plans, specifications, contract and budget.
6. Order a proposed-construction appraisal based on the land and builder documents. Either you or CFS (through one of our AMCs) can order it.
7. Request the title work to make sure there are no clouds that would prevent the transaction.
8. Complete the New Loan Submission form and upload the supporting documents for review.
9. CFS then provides the borrower with our own loan disclosures for the construction loan.
10. Once the appraisal is in and the loan amounts are confirmed, we’ll need the updated 1003, DU and UW for the permanent loan.

Please note

• Any required down payment, being the difference between the total cost of land plus build and the mortgage loan, is paid at the construction loan closing.
• A full Lender’s Title Policy and Owner’s Title Policy (unless waived by the borrowers) are included in the construction loan closing, so they are not part of the cost at refinance.
• Mortgage brokers cannot collect any fees at the construction loan closing. Consulting fees can only be paid if they are included in the builder’s budget and contract price, and are paid as a draw after loan approval.

You’ll see every draw

CFS takes pride in keeping you informed during construction. The refinance loan officer is automatically notified of each construction draw, including inspection photos, so you can watch the home being built and be ready to start the refinance as construction nears completion. The borrower is your client, and we work with great integrity to make sure they remain your client to the very end.