Use this before
Use this before lender prequalification and update it as plans and scope develop. Each lender sets its own availability, rates, terms, fees, appraisal, draw, inspection, and approval requirements.
Borrower and property packet
- Organize financial documentsGather current income, tax, asset, debt, identity, and down-payment-source records requested by the lender. Keep one dated packet and update changed documents.
- Document the landProvide the purchase contract or deed, legal description, survey, current liens or payoff information, taxes, easements, and any land equity the lender will evaluate.
- Explain the property pathInclude zoning or use confirmation, access, wastewater, water, utilities, floodplain, and any known site constraints that affect completion.
- Separate cash reservesIdentify funds for closing, down payment, lender-required reserves, owner purchases, overruns, and items excluded from the construction contract.
Project and builder packet
- Use one coordinated plan setGive the lender, appraiser, builder, and insurer the same current floor plans, elevations, site plan, square footage, and structural description.
- Create written specificationsList exterior materials, windows, doors, insulation, mechanical systems, plumbing fixtures, electrical scope, cabinets, surfaces, flooring, and other value-driving selections.
- Show complete site scopeInclude permits, survey, engineering, clearing, access, grading, drainage, foundation, wastewater, water, utility extensions, and restoration as contract work, owner work, allowance, or exclusion.
- Provide a complete budgetReconcile contract amount, allowances, owner purchases, land costs, lender costs, contingency, and any work performed before closing.
- Prepare builder informationSupply the lender's current builder application, contract, license or registration information, insurance, tax form, references, financial records, schedule, and draw information as requested.
- Align the appraisal packageMake sure the appraiser receives the current plans, specifications, site features, outbuildings, attached shops, porches, garages, and energy or finish details included in the budget.
Loan and draw questions
- Compare the full loan structureAsk about land payoff, lot equity, down payment, rate locks, interest during construction, conversion terms, closing costs, contingency, and maximum loan-to-cost and loan-to-value limits.
- Map draw timingAsk who requests draws, what documents are required, how inspections work, how long funding takes, whether deposits are eligible, and how retainage or final funding works.
- Confirm change-order treatmentAsk how approved changes, owner upgrades, underruns, overruns, contingency use, and scope reductions affect the loan and appraisal.
- Coordinate insuranceConfirm builder's risk or course-of-construction coverage, general liability requirements, owner coverage, lender clauses, and the transition to permanent homeowner coverage.
- Keep a decision logRecord each lender's answers, assumptions, document requests, dates, and open conditions so comparisons stay tied to the same project.
Official sources
Open the current agency or technical source before making a property, design, or permit decision.