Builder/Contractor Information Package
- Description of Materials
- Completed Builder Package (General Resume/References)
- Copy of Current Contractor’s License & Insurance Bond
- Completed W-9
- Credit Report
- Proof of Current General Liability Insurance
Construction Project Information Package
- Complete set of construction plans signed by contractor & borrowers (PDF Format)
- Construction Contract signed by contractor & borrowers
- Line Item Budget prepared by the contractor
- Completed Construction Loan Budget Worksheet
- List of any Prepaid Items
- Lot/Land Details – Deed or offer to purchase, protective covenants and/or other deed restrictions
- Clear description of responsibilities of the architect if applicable
Submit Plans & Specifications for Lender Appraisal
Lenders require an appraisal in order to determine the exact value of the house that you are building and everything needed for the construction process. Finalized plans, cost breakdowns, and material specifications are required for this step. The appraisal value is the key to determining and finalizing the total loan amount.
Lenders won’t lend more than a certain percentage of the home’s completed value, usually 75% to 80%, of the appraised value or the actual cost of construction, whichever is less.
Listed below is the information that most lenders will need in order to have a professional third-party appraisal done based on your house plans:
|Includes foundation plan, floor plan and elevations. These will need to be signed & dated
|Includes lot dimensions, setbacks, easements, adjoining roads, location of house, location of garage and the location of the septic system if applicable.
|Specifications & Materials
|A detailed list of your materials and specifications. These will need to be signed and dated.
|Every cost associated with the build.
|Fixed-Price Construction Contract
|Includes state sales tax, builders profit and overhead. Should match up exactly with the line item budget/cost breakdown. Contract must be signed and dated.
The appraisal must be completed before your construction loan can close, so make gathering the documents required to order the appraisal one of your first priorities. Appraisals can sometimes take a few weeks to get scheduled, so you will have plenty of time to prepare the rest of your required documentation before it is time to close on your construction loan.