Building Your Home. Building Your Dreams.  M&T Mortgage can help.

Building your home is exciting, but if you don't know what to expect, it can be frustrating.  With M&T you can feel secure in knowing what to expect when you apply for a mortgage.  That's because we work to keep you informed every step of the way.  Whether you're building your first home or your dream home, M&T is here to help you get the most home you can afford simply, easily and conveniently as possible.

How to Start - To begin building your home, the first thing you'll need to do is determine what kind of financing you'll need.  A call to an M&T system built loan officer is the best way to find out what kind of financing suits your situation.  After talking with a loan officer over the phone, we'll start your pre-approval or loan application immediately.

Finding Your Home - With your pre-approved commitment letter form M&T, you can shop for a system built plan that meets your needs with confidence because you'll know how much home you can afford.  And you'll have the opportunity to take advantage of an interest rate you are comfortable with.  Once you've chosen the system built home that's right for you, we'll complete a loan application for you to sign and request the documentation listed below.

What You'll Need at Application

• Application fee and lock deposit
• 12 months' mortgage history
• 1 month of current paystubs
• W2's from the last 2 years
• Bank statements from the last 3 months
• Sales agreement for the land
• Complete set of plans, specifications, and a fully-executed builders contract
• Records of any deposits paid to the builder/contractor
• Record of anyloans, including balances, account numbers and monthly payments

What to Expect-Once M&T has received your signed loan application with the required documents, we'll send it to our processing department and then for underwriting approval.  After all documents have been reviewed and program guidelines met, the underwriter issues an approval.

Once You've Been Approved - After your loan has been approved, an appraisal on what will be your new home is scheduled.  The appraisal is based on the value of your land plus the cost of construction.  After the appraisal, we'll work with your builder to arrange a customized disbursement ("draw") schedule that pays for each of the significant steps of construction.  Disbursements are paid upon a satisfactory inspection of the work that has been completed.  Inspections are generally ordered within 24 hours after receiving written or verbal requests from you or your Builder/Contractor.  Disbursements will be paid in the form of a check paid to you and your builder.

Locking in Your Interest Rate -Locking your interest rate can be confusing.  Talking with your loan officer will help you through the process. Points to remember include:

• The constuction interest rate is locked at apllication.
• The permanent mortgage rate can either be locked at application or you may elect to float your rate.
• If you lock your permanent rate at application, your lock is good for 30-270 days, depending on the option you choose.
• If you wish to float your permanent rate, if will float until you call to lock or it will automatically be locked 5 days prior to modification.

Completing the Process - After all documents for the construction and permanent mortgage are complete a settlement will be scheduled with you for signatures.  Some closing costar are paid at this time, any liens against the land must be paid off, and the construction phase of your home starts.  

You are required to make interest-only payments to M&T on the funds as they are disbursed during construction.

Once a final home inspection is completed and a certificate of occupancy is issued, your loan is ready  to modify into your permanent mortgage.

Converting to a Permanent Mortgage - A modification package is sent to you for signatures on final documents and to pay the balance of your closing costs.  Your interest-only payments will no longer be required;  instead, you will start making your regular monthly mortgage payments.

 For more information, call Peggy Bouton at .  Or apply online by clicking on the following link to www.systembuilt.com.