Once you have received Heritage’s cost proposal for your new home you are ready to talk to a lender. Most likely you have a mortgage on the property and may have a second mortgage or equity line as well.

Generally, there are five steps for financing the construction of a new home:

1. Application

Heritage will provide you with a copy of your contract, plans, specifications, and price information which you will need to provide to the bank you choose to obtain your financing. The bank will also require supporting documentation such as income, asset and other financial information.

2. Bank Approval

The Bank will order an appraisal based on the information Heritage has provided. Once the appraisal has been completed the bank will submit all of your information to underwriting to review the construction loan.

3. Construction Closing

After all the necessary approvals, you will close on the loan that will finance the construction of your home. A settlement agent will give you specific instructions about the closing. As soon as you close on the construction loan, you may begin building.

4. Draw Process

During construction, you and your builder will request draws from the construction fund for work that has been completed.

5. Completion of Construction

A final inspection will determine that the construction on your home is complete. You'll also need to get a Certificate of Occupancy (or its equivalent) from your local authorities. Your construction portion of the loan will transition into your permanent loan product.