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Closing on Your Mortgage

Closing timing

Typically, we can be ready to close on your mortgage within 30 to 60 days from the date of application. And, at Dollar Bank, we arrange only one mortgage closing, set up at your convenience.

Dollar Bank will provide you with a list of reputable closing agents in your state to provide you with a seamless closing transaction. Of course, you are free to choose your own title agency. 

As the borrower, you will need to bring your down payment, closing costs, and any other required monies to closing. You will also need to provide proof of your homeowner’s insurance on the proposed construction. The title company will provide an estimate of your real estate taxes. Your escrow for taxes, depending upon the county, will be collected at the end of the construction period or at the time of the assessment.

Closing payments 

The time period for construction varies but typically lasts six to 12 months. Dollar Bank will provide a disbursement schedule reflecting stages and percentages of each advance.

During the construction period, payments will be interest-only on the amount disbursed to the builder after each advance. These payments will be billed monthly. The interest rate will be at the initial contract rate.

After the construction phase of the loan, the construction mortgage automatically converts to a permanent mortgage. You will then begin to make regular monthly mortgage payments including principal and interest on the full amount of the mortgage.

Draw schedule

Mortgage proceeds are set up in an escrow account at closing to fund the construction. Funds toward construction that were collected at closing will be used before mortgage funds. Dollar Bank will notify the builder when they can begin building.

Draws are paid to the builder in accordance with the loan advancement schedule. Prior to the distribution of any draw, Dollar Bank will send an inspector to the site to verify the status of construction for the bank. Payments to the builder are processed following the inspection. Your builder is paid according to the agreed-upon draw schedule. Stages on the advancement schedule may be paid out of sequence, but partial draws are generally not permitted.

If the inspection proves to be complete, a check made payable to both you and the builder is provided for the amount of that draw. A Dollar Bank construction representative will oversee each draw for accuracy.

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The information presented is general in nature and is for information purposes only. It is not intended to provide specific legal, tax or other advice to individuals.