Mortgage question! Need your help!

triplec316 · Joined: 24 May 2007 Posts: 1

Hi, I'm currently planning to buy my first home and I found it. It's on pre-sale and it will deliver on next year 2008 summer. The question is: If I take a mortgage right now to buy the pre-sale home, do I starting to pay my mortgage on the date of the delivery which is July 1st 2008 or Do I need to start paying the day the bank approved my mortgage loan? It's my first real estate investement and it's quite stressful, thanks for all your help.

Haplo · Joined: 20 Jan 2005 Posts: 2406 Location: Springfield, IL

It all depends on the type of loan you are using.

I'm not familiar with the speicifics of what you are describing, is it pre-sale as in it's a manufactured home and it's being constructed and brought in later, or is it a stick-built and they just haven't got the time to complete it until 2008?

In either case, your payment won't start until you've actually used the banks money. So if you are doing a traditional loan, that would be when you close. If you are doing a construction loan, then you would start paying after you've made your first draw (which may be as soon as right after you close.) Either way, if you haven't signed the dotted line, you're not making a payment.

littlephoenix · Joined: 17 Aug 2007 Posts: 10

I believe as soon as the bank approves your mortgage loan, a date will be assigned on the paperwork as to when you will start payment.