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How to enter project information in a construction loan?

This article discusses how to enter the project information in a construction loan.

To enter a construction project information:

  • Click on running Loan Servicing in the left panel of The Mortgage Office®.
  • Click the Loans drop-down.
  • Click Construction below All Loans from the menu located on the left of the window.
  • From the grid, select the record you want to modify.

TIP: If the record you want to edit is not visible, use the grid's vertical scroll bar to scroll the contents of the grid up or down, or click FindSearch icon box Find to search for the record by entering your own search criteria. For additional information see How to use find and How to use the data grids.

  • Click edit from the options available on the top panel or double-click on the record to open it for editing.
  • Click list check 60 Terms from the list located on the left of the window, and select Construction Tab.
  • Click the Project tab.
  • Add or Edit information under the following sections:

General:

Field:

Description:

Project Description

 Enter a description for the project. (Maximum of 255 characters)

Project Sq. Ft.

Enter the square footage of the project.

NOTE: The project's square footage is used when calculating project's cost by square feet.

Joint Checks square-check-solid

 

Select this option as the default to use when entering construction vouchers. All joint checks are made payable to the borrower AND the vendor.

NOTE: Widely used in the construction industry, a joint check is a check made out jointly to two parties. Both signatures are needed before the check can be deposited.

TIP: This option is only a default value. When entering construction vouchers you can decide, on a per-voucher basis, which ones are joint, and which are not.

Revolving square-check-solid

Select this option if additional funds are available as principal is paid on the loan.

TIP: When this option is selected, the Amount Repaid is used when calculating the Available Funds.

Completion Date

Enter the expected completion date for the project.

Trust Balance

This is the loan's current amount in the construction servicing trust account. This is a read-only field and can only be updated through transaction processing and adjustments. Click the hyperlink to open the Trust Account Ledger window.

 

Contractor Information:

Field:

Description:

Account

 

Click the hyperlink to select a contractor from the list.

TIP: Before you can select a contractor, you must first create the account by adding a Vendor.

Name & Address

The name and address of the contractor. This is a read-only field and is automatically populated when a contractor is selected.

License No.

Enter the contractor's license number. (Maximum of 20 characters)

 

Funding:

Field:

Description:

Construction Loan

 Enter the construction loan amount. Generally, this is the maximum loan amount.

Amount Funded

This is the total amount funded. This is a read-only field.

Amount Repaid

This is the total amount paid against the loan's principal balance. This is a read-only field.

Available Funds

This value represents the amount available to the borrower. This is a read-only field.

TIP: Available Funds = Construction Loan - Amount Funded + Amount Repaid.

TIP: The Amount Repaid is only used if the Revolving square-check-solid option is selected.

Pending Commitments

This field represents the sum of all pending commitments. This is a read-only field.

TIP: Commitments are funds pledged by one or more lenders to incrementally fund a construction loan. For many companies, the matching of available funds to timely disbursements is critical, and if not managed properly could create cash flow deficiencies in a project. Tracking commitments ensures that funds are available when needed.

Unidentified Funds

This is the total amount still needed to be raised in order to fund the project to completion. This is a read-only field.

TIP: Unidentified Funds = Available Funds - Pending Commitments.

 

Tasks:

Field:

Description:
Budget/Cost Breakdown Opens the Construction Budget / Cost Breakdown window where you can add or edit the project's construction budget. See How to Use the Construction Budget / Cost Breakdown Grid.

Funding History

Opens the Funding History window which displays all the source, date and amount of all lender funds received for this project. See How to use the funding grid.

Funding Commitments

Opens the Funding Commitments window where you can add, edit or delete this project's funding commitments. See How to Use the Commitments Grid.

Billing History

Opens the Billing History window where a chronological listing of all billings for this project is displayed. You may also use this window to delete the last billing or adjust the past due amount.
  • Click APPLY to save or ban-solid to abort changes.

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