Whether it is bricks and mortar or wood and nails, let our experienced Mortgage Team work with you to develop a strong financial plan for purchasing everything from the land to the light fixtures. We want you to build your home with confidence, knowing you are receiving the best rate and understand the process as we work with you.

LOCAL MORTGAGE SERVICING
Mid-Minnesota has built our Construction Loan program around your needs - at the center you will find Local Mortgage Servicing, meaning you can receive the great rates offered on the secondary market, but MMFCU will still service your mortgage! So, if questions arise 10 days, 10 months or 10 years down the line you will be able to take advantage of the credit union service you've grown to expect.

HERE'S WHAT ELSE YOU CAN LOOK FORWARD TO FROM MID-MINNESOTA...

• An explanation of the types of Construction Loans available, as well as professional assistance in helping choose the one that is best for you - whether you are planning to build your first home or vacation home.
• Flexible terms to suit your needs, with 10-, 20- and 30-year mortgages*
• Competitive interest rates while you build and when the home is complete
• One-time closing costs, saving you thousands of dollars
• No penalties on early pay off
• Interest rate protection throughout the construction process with the final rate modified upon completion of the home
• Financing for up to 90 percent of the value

YOUR FINANCIAL FOUNDATION PRE-APPROVAL IS THE FIRST STEP
When you visit us there are a few items you will need to bring:
If you are salaried: provide one year's W-2 and current pay stubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.
If you own rental property, bring copies of rental agreements and two years tax returns.
Previous month's bank statements for each bank, stock and mutual fund account to show sufficient funds for down payment and closing costs.
Recent copies of any stock brokerage or IRA/401K accounts that you may have.

WHAT HAPPENS NEXT
After the pre-approval, you will need to provide:
❑ House Plans
❑ Warranty Deed and Abstract
If you are buying land as part of the Construction Loan:
❑ A copy of the Purchase agreement for land
If you will be using a General Contractor to build your home:
❑ Copy of your signed builders contract
If you will be acting as your own General Contractor:
❑ Completed sworn construction statement
❑ Bids for all subcontractor labor and materials

The title company prepares the title commitment, ensuring there are no liens on the property. It is important to wait until your Construction Loan is closed before starting any type of work or moving materials and equipment on the property.

You then have six or nine months to complete construction, during which time you can take up to five Advances, or disbursements, of your loan funds. The only payment(s) you make during construction is interest, which is due at the time you take an Advance. When requesting an Advance from the title company, allow up to 72 hours for your request to be processed (an inspection maybe required at this time).

TIME TO MOVE IN
Along with unpacking boxes and making your house a "home", your Construction Loan will be modified to a permanent Home Mortgage, and the best part is your servicing stays with the credit union.

Consult your tax advisor about deductibility options. See rates page for current rates. The HELOC is a variable rate product based upon the Prime Rate. The maximum HELOC rate is 18.0% APR. Home equity programs may be subject to nominal closing costs of approximately $150 per $20,000 borrowed. * For example, a $100,000 mortgage would require 360 payments of $599.55, assuming a 20% down payment and an APR of 6.25%. Rates subject to change. Effective January 2004. Equal Housing Lender.