Construction Permanent Loan

23 Jul Construction Permanent Loan

Posted at 22:19h in Custom Home Financing by Bob Linger

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• The first thing that needs to be done prior to closing on your construction permanent loan is to acquire a survey of the land you are purchasing. Even if the seller provides you with one, it is wise to get one done on your own.

• Once you have the survey in hand, our draftsman can get started on the first floor of the house. If you live in town and can meet with him to go over what you are looking for, we will set up a meeting. If you live out of town, we can go over everything via phone calls and emails. (Total estimated time for 1st floor drawing: 2-3 days)

• The first floor usually takes a couple of days to draw, maybe even less. We will then show this to you. If you like it, we can proceed on to the second floor. If you do not like it, the necessary changes will be made. Once the second floor is approved, we can move onto the elevation. (Total estimated time for 2nd floor drawing: 2-3 days)

• Once the first and second floor plans are approved, we move to the elevation. These are the only three parts of the plan that the bank needs to do an appraisal. Those are also the three things we need to start putting together a concrete price and specifications. (Total estimated time for exterior elevation: 2-3 days)

• After the plans are done, we typically have another meeting or phone conference to go over exactly what you are looking for in the specifications. Keep in mind, we are aware of what you are looking for from prior conversations, this is more of a recap to make sure everyone is on the same page.

• Josh will work on getting a takeoff done of the plans and we will probably be able to have a set of specifications done within about a week. If there is something coming in that may put you over what you want to spend, we can show you where/how to value engineer either the plans or the specs.

• Once the specs are finalized we can then go to contract.

• All the bank needs from you for a construction perm loan are the following: