When building a new home, a borrower will need a loan to provide financing to take them through lot acquisition, construction, and then once the project is complete, conversion of the loan from construction to permanent. These mortgages, known as “Construction Loans” or “Construction to Permanent” financing, are extremely helpful to borrowers so they can save time, as well as a significant amount of money in additional closings costs that would be incurred by multiple traditional closings. Many lenders also offer a Renovation Loan Program for existing homes renovations, and it works similarly to a Construction Loan for new construction.
First Guardian Title and Escrow is able to help you close both of these loan types and will serve as Mechanic’s Lien Agent (MLA) during the construction process on both. As the MLA, we monitor the construction loans by doing the following tasks: coordinating title bringdowns, issuing advance endorsements to the lender, and gathering necessary lien waivers from each subcontractor. Our role is critical in this process as we ensure that all the subcontractors are paid so that the new owner does not encounter Mechanics’ Liens after closing. To find out more about these types of closings, please contact our office today.