FAST TRACK PROCEEDURE
How to Purchase a GO ZONE home(s) and put your investment into service quickly.
Step 1: BECOME A MEMBER OF MLRED then complete and send your forms to MLRED, the Bank of America Pre-Qualifying form. Mark on the form how many homes you wish to be considered for. Send no money at this time.
Step2: Upon receipt of your Bank of America Pre-Qualifying form (BAPQ form), you will be assigned a place in the pre-approval line (Demand is heavy so we want to be fair and we will track pre-qualifying on a first come first serve basis)
Step 3: MLRED will forward your BAPQ Form to Barry Chadwell at Bank of America. Barry will pull an “in-file” Tri-company credit report based on the info you supply in your BAPQ. If further clarification is required, Barry Chadwell will make attempts to contact you to gain additional information.
Step 4: Based upon the results of the “in-file” Tri-company credit report, Barry Chadwell will either pre-approve you for the purchase of a GO ZONE home(s), or he will contract you to gather additional information he needs to make that determination, or he will call to tell you simply that there are reasons you don’t qualify. If additional information is required, Barry Chadwell will discuss that with you and once he receives that additional information, he will make his determination.
Step 5: Once pre-approved, Barry will notify you and MLRED also. Several things happen next:
First, a contract is prepared for the home(s) you wish to purchase. MLRED will put you in touch with representative of the developer of this project they will select the best lot/location from the lots available. Consideration will be given to how quickly the home will be ready to close, and whether a renter is waiting to occupy the home. The developer representative will send you this contract for signatures, and will look to receive this contract back along with a deposit check in the amount of $6,000.00 (Roughly 5% of the purchase price) payable to our escrow agent Luckett Land Title Inc. This deposit will be held in escrow until the day of closing at which time it will be applied toward the total investment required to close the transaction. If your loan fails to close, you are entitled to a refund of this deposit. Your representative will also send you a standard Mortgage Application form 1003.
Second, you will need to fill out the standard Mortgage Application form 1003, and send that back to your representative along with an application fee of $200 payable to Bank of America which will be used to obtain an appraisal on the home. Send this application and the contract back together.
Step 6: Your represenative will forward a copy of the contract, the original Mortgage Application form, and the application fee to Bank of America. B of A will call you to have a government required phone interview to review the information on the 1003 form. Once the phone interview is complete, B of A will complete an online process commonly known as “Desk Top Underwriting”. Once this process is complete, B of A will know if additional documentation or further information is required. Oftentimes there are no additional requirements. Regardless, B of A will do what is required to then submit your file to his loan processors at Bank of America who will order an appraisal, and begin the process of closing your loan.
Step 7: Your representative will keep you abreast of your anticipated closing date, and your tenant move in.
Frequently Asked Questions
1. What costs will my deposit be applied to?
Your deposit is held in escrow until the home is finished and a closing takes place at which time the deposit will be credited toward the total investment required. We utilize the services of Luckett Land Title Inc., for all escrow deposits and closings.
2. Is my deposit refundable if I don’t qualify once I sign the contracts?
Yes, your deposit is refundable if for some reason you do not fully qualify once you sign the contract and fill out the Mortgage Application form 1003. We purposely place your initial deposit with Luckett Land Title Inc., where it is held in escrow until the home is finished and a closing takes place.
3. How long will the pre-qualifying process take?
Pre-Approval usually takes no more than a few days, depending on how when Bank of America pulls your credit report, then has a follow-up conversation with you.
4. How long will the entire approval and closing process take?
From the time you submit your Bank of America Pre-Qualifying form, full approval and closing could be as quick as 40-45 days subject to availability of competed homes. If a home is not completed, and therefore has to be built from scratch, construction should not exceed 90 days from the day permits are pulled. All homes that go to contract immediately have permits submitted to reduce the time it takes to deliver a home. Many homes are pre-permitted in advance of demand.
5. How long does the permitting process take?
This period differentiates from home to the next depending on the municipality in which you're building. On average permitting is approximately 3 to 5 weeks.
6. How long is the construction period?
From the date the permits are issued, approximately 90 days.
7. What payments should I expect during the construction period?
None. Once your deposit has been made, the developer obtains the needed construction financing, and pays all construction interests and closing costs. See the ”NO HIDDEN COST GUARANTEE” for assurances of this.
8. Should I be concerned about which lot my home(s) is on?
No. All the lots go thru an inspection and due diligence process to assure they are acceptable for construction purposes, and that the location is leaseable. The neighborhood we are building in , Bayside Park, is prime for rental sapes and as homes are built they quickly fill up.
9. How do I find renters or lease to own tenants?
MLRED and the developer are aligned with a few of the more reputable, local property management companies in the area. Once a contract is signed, we will add your home to the rental pool so that it is available early. This assures a timely rental to a tenant. Demand for affordable housing is high due to the reconstruction efforts along Mississippi’s Gulf coast, and due to the expanding job market from other expanding economic forces in place.
PERMITTING AND CONSTRUCTION TIMELINE
Permitting
The permitting process involves paperwork, processes, and governmental agencies. The paperwork includes, but is not limited to, Builder’s Risk insurance, boundary surveys, sewer account set-up, and the creation and engineering of building plans. The permitting process timeline varies based on numerous factors, and averages between 3 to 5 weeks.
Stages of Construction
Note: Days noted are approximate only, and may vary due to numerous factors such as weather, inspection schedules, etc.
1.
Scrape and Pre-Fill Lot (5 days)
a.
The topsoil is scraped off the existing lot until virgin ground or hardpan is exposed.
b.
Stakes are set to mark the finished floor height, which determines how many cubic yards of new fill (dirt) will be trucked in.
c.
A silt barrier is installed around the property for erosion control, as mandated by the city.
d.
The dirt is then compacted down with machinery, to provide a base for the structure.
2.
Underground Mechanicals and Pour Monoslab (11 days)
a.
Form perimeter of house.
b.
Dig footer and add steel reinforcements.
c.
Install and inspect underground plumbing and electrical.
d.
Treat foundation with pesticides.
e.
A vapor barrier (thin plastic sheeting) is laid over the fill and inspected.
f.
A 4” thick mixture of concrete and reinforcing fiber is poured over the vapor barrier creating the slab.
3.
Frame Exterior and Interior Walls, Set Trusses, Deck Roof (5 days)
a.
After the concrete slab has cured (dried), exterior walls for the structure are framed.
b.
The roof trusses are set and fastened with nails to the exterior walls.
c.
The interior of the house is framed. This consists of installing wood studs throughout the house to outline each room.
d.
Plywood sheathing is installed on the roof trusses.
e.
An inspection is required at this stage.
4.
Mechanical Rough-ins, Dry In, Finish Roof, Window and Exterior Door Installation (10 days)
a.
Rough mechanical, (plumbing, a/c, and electric) are installed within the framework of the interior of the house.
b.
The plywood sheathing is “dried in” using a waterproof felt paper (tar paper) material.
c.
Roof is finished.
d.
An inspection is required at this stage.
5.
Framing inspection, Insulation, and Exterior Siding (6 days)
a.
The framing is inspected by local building officials.
b.
Insulation is added.
c.
Install exterior siding.
6.
Drywall and Lift Station Installation (8 days)
a.
Drywall is hung on the interior of the home and then coated with a finish texture.
b.
Sewer Lift station is installed.
7.
Paint, Cabinets, Tile, Soffit/Fascia, (10 days)
a.
The interior and exterior of the house is painted.
b.
Kitchen and bathroom cabinets are installed.
c.
Floor and wall tiles are installed.
d.
The soffit and fascia are installed to the exterior.
8.
Interior Trim, Trim Paint, Lockout (5 days)
a.
Interior wood trim (baseboards and casing around doors) is installed and painted.
b.
The culvert (pipe drainage system at the end of the driveway) is installed.
c.
Locks are placed on all doors (“lockout”).
9.
Appliance Delivery, Mechanical Trims, and Driveway (8 days)
a.
Appliances that require specialized installation (dishwasher and range hood) are installed.
b.
Ventilated shelving is installed in all closets.
c.
Electrical outlets, switches, and all plate covers are added.
d.
Toilets, sinks, and shower fixtures are installed.
e.
A/C grills, A/C condenser, and air handling are installed.
f.
Lighting and mirrors are installed.
g.
The driveway and sidewalks are formed using a mixture of concrete and reinforcing fiber.
10.
Rough Clean, Final Grade, Sod, Mechanical Start-Up, Screen Out, Appliances, and Carpet (9 days)
a.
An initial cleaning of the house occurs.
b.
Final grade (topsoil) is trucked in a spread around the entire house.
c.
Sod (grass) and landscaping are installed.
d.
The A/C thermostat is set and start-up of the units is done.
e.
Final dry-wall clean up (punch out) occurs.
f.
Screens are attached to all windows.
g.
Remaining appliances are delivered and installed.
h.
Carpet is installed.
11.
Certificate of Occupancy (3 days)
a.
Call Building Department for C.O. inspections.
b.
Receive Certificate of Occupancy
12.
Supervisor Walk-Through, Punch-Out, Area Manager Walk Through (10 days)
a.
All windows and doors are adjusted, locks checked.
b.
A supervisor performs a walk-through review of the home and a punch-out list is prepared. This list includes all visible flaws and open repairs that are necessary.
13.
Customer Service Turnover (7 days)
a.
A final walk-through is performed by the developer
b.
Customer Service representative for a review of the final punch out list.
c.
Turnover is coordinated with the building owner.
Note: The estimated total number of days to build the home (excluding the permitting process, and Customer Service Turnover) is 90.