THE CONSTRUCTION PROCESS
PREQUALIFICATION FOR A CONSTRUCTION LOAN
As with all real estate purchases, the first step is to speak to a lender and become prequalified for a loan. We request that all buyers contact Tracy King at Camden National Bank and obtain a letter of pre-qualification from her before exploring build packages with Ryzen Homes. The ease of Camden National Bank's construction loan process; their competitive rates; and Tracy King's familiarity with Eagle River, all greatly benefit the buyer and the builder.
Amy Torrey, AVP Mortgage Loan Officer, Androscoggin Bank, MNLS# 1240368
ATorrey@androscogginbank.com • Mobile
(207) 400-9392 (Mobile)
(207) 518-6321 (Office)
Lots may be reserved using a Reservation Form, and providing a deposit of $1,000. The Builder and Buyer then have ten business days to come to terms with the design; specifications; and cost of the build package. The build package includes a paved driveway; septic system designed for three to four bedrooms; drilled well; seeded lawn; and hookup to electricity.
CONTRACTOR'S AGREEMENT & MAINE PURCHASE & SALE AGREEMENT
Once the Buyer enters into the Contractor's Agreement and Maine Purchase & Sale Agreement, an additional $9,000 deposit is required for a total non-refundable fee of $10,000. Here are a samples of the Contractor's Agreement and Maine Purchase & Sale Agreement.
At the closing, the land is deeded to the Buyer, and the first draw is paid to the Builder to pay for the lot of land. Subsequent draws are made in accordance with construction progress and the draw schedule. Once the Builder receives the Certificate of Occupancy, the construction loan transfers to a traditional mortgage.