New home construction loan

Home Construction Loan

Okay, so you've selected your community, your lot, and your architect. You've got a terrific set of plans, and you're ready to build. What about construction funds? Have you selected a home construction loan provider and considered the documentation they will need to make a lending decision?

Take a moment now to look over the list. Obviously, the sooner you get the complete set of items the sooner you can start construction. Please note that though the second group of items your contractor will give you, you'll still need to collect these items and assemble them to complete your home construction loan package.

• Plans and specifications for the proposed construction completed by the architect
  


• Purchase Contract or Agreement for lot if lot has been purchased within the past 12 months or if it will be purchased as a part of this transaction
  


• HUD-1 Closing statement provided by the closing agent if property was purchased within the past 12 months
  


• Copy of Listing Agreement on current residence to be sold
  


• Architect Agreement
  


• Copies of any permits obtained (may also have been obtained by Contractor)
  


• Copies of any approvals from city/county/homeowners' association

Items to get from your contractor:

• Property Profile provided by the contractor
  


• Line Item cost breakdown listing costs for all materials and labor
  


• Builder's Statement listing the builder's project and credit references
  


• Copy of Builder's current Contractor's License evidencing that he is licensed to build the type of structure proposed
  


• Construction contract between you and the builder stating the fixed price for completion of the improvements showing a start and finish date.