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Questions and Answers
What is the purpose of a Construction Loan?
What is the purpose of a Construction Loan?
- To purchase materials for home renovations
- To pay off credit card debt
- To finance the completion of a new home (correct)
- To refinance an existing home
How long is a typical Construction Loan term?
How long is a typical Construction Loan term?
- 12 months (correct)
- 30 years
- 5 years
- 24 months
What is the purpose of a 'Take-Out' Loan?
What is the purpose of a 'Take-Out' Loan?
- To refinance an existing home (correct)
- To pay off student loans
- To take out a personal loan
- To finance the construction of a new home
When does the borrower need to disclose the 'Take-Out' Loan?
When does the borrower need to disclose the 'Take-Out' Loan?
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What is the purpose of establishing a Take-out refinance Loan in Encompass?
What is the purpose of establishing a Take-out refinance Loan in Encompass?
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Why is it necessary to have detailed line items in the draw schedule for a construction loan?
Why is it necessary to have detailed line items in the draw schedule for a construction loan?
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What is the significance of verifying assets for All Western Mortgage?
What is the significance of verifying assets for All Western Mortgage?
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Why is it important to have project approval from CFSI Construction Management before underwriting?
Why is it important to have project approval from CFSI Construction Management before underwriting?
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What does 'Total Cost to Construct' represent in a construction loan context?
What does 'Total Cost to Construct' represent in a construction loan context?
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What should borrowers provide as proof of insurance according to the text?
What should borrowers provide as proof of insurance according to the text?
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