The Building and Financing Process
There are several important steps you should take to ensure a successful building and financing process.
#1 - Determine Your Budget.
Determine your budget and the loan pre-qualification requirements with your loan officer. After you are comfortable with the equity requirements and costs, begin the builder and location selection process.
#2 - Select A Builder.
Interview and select a builder that fits your needs. The builder will go through a quick review process with our Construction Department and must be licensed and insured. You may also need an architect if the builder does not provide this service.
#3 -Sign The Contract.
Sign the contract for the land purchase, if applicable and complete the design process. You’ll also need a signed construction contract which clearly identifies the building costs, loan draw schedule, upfront deposits, house plans, material specifications, and any site improvement expenses. Your loan officer will need the signed contract(s) to confirm the loan program details, equity requirements, and closing costs estimate.
#4 - Submit Your Loan Application.
Submit your loan application at the same time you select a builder if you haven’t already. We will need your application and the supporting documentation including asset statements, paystubs, and complete tax returns to issue a formal loan decision. We will also have an appraiser inspect the property and review the plans to determine the value for the maximum loan calculations.
#5 - The Draw Process.
After the loan closes, we’ll guide you and your builder through our loan draw process. We’ll need the building permit and required inspections to fund each phase of construction as outlined on your draw schedule.
#6 - Permanent Financing.
As the project nears completion, work with your loan officer to establish permanent financing if you did not utilize our One-Time Close Construction Mortgage Program. We will need the occupancy permit prior to closing on the permanent loan.