Credit Evaluation School eBook

Consumer Loans – Residential Construction

Primary Documents Required: • Signed Residential Mortgage Credit Application (Form 1003) • Promissory Note/Construction Draw Note • Appraisal or Evaluation • Title Insurance Commitment/ Preliminary Lien Search • Agreement to Furnish Homeowner’s Insurance

• Credit Report • Warranty Deed/ Mortgage Deed of Trust • Appraisal Review • Builder’s Risk Hazard Insurance • Income Information • Master Construction Inspection Draw Report

Commercial Loans – Working Capital & Equipment

What is it: A loan to a commercial business for business purposes. Typically, for operating purposes (working capital line of credit) or for the purchase of equipment to be used in the business.