Banker helps previous clients buy a new North Branford home

Mortgage banker: Patricia Leary Property type: Single-family home construction in North Branford

Purchase price: $475,678

Loan amount: $437,000 Appraised value: $460,000 Loan type: Conventional, 95 percent loan-to-value. Backstory: Leary often works with buyers who are purchasing new construction by helping them through the process from start to finish which takes months.

Leary received a call from past clients in April who had decided to sell their current home and work with a builder to build their dream home. Leary had helped this couple purchase their home as first-time home buyers in August 2009. They were going to list their current home for sale, hoping to sell before the new construction was completed. They sold in July.

The couple came to contract in May for the purchase price of $438,000. The property was to be completed at the end of November. Because the contract had a mortgage commitment date due in 30 days, Leary started the loan application process right away. Leary sent the loan to underwriting for approval and then ordered the appraisal on the property.

On new construction, the appraiser is given the address along with the plans and blue prints for the property. The appraiser then completes the appraised value with the completed value. The appraisal came in at $440,000. The appraisal was sent to the underwriter for a full mortgage commitment. Once the commitment is issued, it is sent to the buyers and their attorney.

The loan then sat in Leary’s pipeline until October. It was time to get the loan ready to close. Leary also requested the Certificate of Occupancy, which has to be requested from the town inspector by the builder.

Once this certificate is sent to us, we can then move forward and set up a date to close. Leary then asked the buyers if there were any upgrades added to the original purchase and sales contract.

They sent her a change order with upgrades listed at $37,658. This change order increased the purchase price from $438,000 to $475,678. Because of the increase, the underwriter requested a new appraisal.

The new appraisal came in at $460,000. In this case, the appraised value was now less than the purchase price. The loan had to be reconstructed to increase the loan amount form the original of $416,500 which was 95 percent of the $438,000 to $437,000, 95 percent of the new appraised value of $460,000.

The buyers now had to bring the difference between the purchase price and the appraised value to closing, which would be added to the 5 percent required down payment. Once all of the updated financial documents along with the new appraisal and the Certificate of Occupancy were sent to the underwriter, we received the clear to close on the file.

Leary is always thankful when her past clients put their trust in her for their financing again. She takes great care of them during the transaction following up with all parties involved during the process.