Obtain Your Financing and Close Your Loan

With your plans, site costs, and pricing agreement in place, the next step is securing the financing that will make your project possible. Working with a lender who understands construction and construction-to-permanent loans ensures the process is smooth and predictable.

Once you’ve completed the application and your loan is approved, you’ll move on to closing. At this stage, all loan documents are signed, and the funds are set aside to be released as construction progresses. The loan is typically structured with a draw schedule, which provides funding in phases (such as foundation, framing, and final completion) after inspections confirm progress.

Key Things to Confirm Before Closing

• Do you understand the loan type (construction-only vs. construction-to-permanent) and how it transitions into your long-term mortgage?
• What is the draw process, and how quickly does the lender release funds after inspections?
• Are your interest-only payments during construction clearly explained?
• Do you know the closing costs and reserves you’ll need upfront?
• Has your builder been fully approved by the lender?

By finalizing your financing and closing your loan before construction begins, you ensure funds are available at each stage of the build—keeping your project on schedule and reducing the chance of delays.