The paperwork required by Lenders for Construction Loan Approval is listed below. If you are looking for a Construction to Permanent Loan the following list of items is in addition to the regular items required for a purchase or refinance mortgage. Please click here for more information.

Paperwork needed in support of Construction Loan Application:

The following will be required for Appraisal:

  • 2 complete sets of architectural plans, including a plot/site plan (signed/dated by builder and borrower)
  • 2 copies of the description of materials and specifications (signed/dated by builder and borrower )
  • 2 copies of the cost estimate (signed/dated by builder and borrower) – detailed bid by builder is advisable
  • Fixed-price construction contract (signed/dated by builder and borrower) – contract with builder is advisable
  • Acknowledgement of any pre-paid construction costs, along with copies of receipts (signed by builder and borrower), such as closing statement for payment of land, paid invoices for architectural plans and other third party costs
  • Legal description of the property and purchase contract/details of purchase
  • Septic permit (if applicable)
  • Well report (if applicable)

Documents required before loan closing:

  • Contractor’s license & Business License
  • Resume (if owner-builder without Contractor’s License)
  • Supplier/Contractor List (if applicable)
  • Construction Schedule
  • Other Third Party Reports, such as Structural Engineering (if applicable)
  • Building permit
  • Contractor’s IRS certification
  • Proof of liability/hazard insurance, - some lenders required minimum coverage

Items Needed During the Construction Loan Period:

  • Draw Request
    • Invoices from Contractor
    • Lien Waiver Releases
  • Inspections (by Lender approved Inspectors)
  • Local Government Inspections (signed off)
    • Plans
    • Foundations / Footings
    • Electrical & Plumbing
    • Other (as needed)
    • Conditional
    • Final (Notice of Completion)

Items Needed for Permanent Loan (After Completion of Construction)

  • Recorded Owner’s Notice of Completion
  • Final Appraisal
  • Homeowner’s Insurance Policy
  • Lien Waivers
  • Other (as needed)

For more information, contact out knowledgeable brokers at Loan People USA.


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