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Owner Builder Home Construction Loan: Draws |
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Getting Started |
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Credit Approval |
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The owner builder home construction loan draw process is the method which you will request money from the bank to pay for land, materials, and labor at different time intervals during construction. Most banks will disperse money for material and labor only when a certain percentage, or stages of construction have been met. You may have the ability to request a draw from your owner builder home construction loan when the foundation is completed, then again when the framing is completed, and so on. Other banks will advance money for material purchases and pay for labor when any part of the work is completed. |
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Project Approval |
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Construction Draws |
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In either case the bank will require an inspection of the property with each draw request to verify how much work is being done on your project. You will be required to have invoices, paid receipts, and proof of purchase in order to have money paid out on your project. Your BuilderCoach will be a valuable partner and will assist you in the draw process and review your draw requests. |
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The first home draw will be at the construction closing, you need money for the land, construction permits, and any material purchases or deposits needed to begin construction. |
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After your building plans have been completed, you will need to provide the following project documents to your lender representative |
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2 full sets of plans one for the bank and the other for the appraiser GreenHomeCoach |
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Specifications and selections, which the appraiser will use to establish a price for your home. Your BuilderCoach and our owner builder program will greatly simplify this process for you |
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Once you have received all your bids to build your home, you will need to provide |
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Sworn Construction Statement - this is an itemized list of all costs involved in the construction of your new home. Our owner builder program also automates this process for you after all bids have been awarded. |
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Last but not least, when you have completed all the steps necessary for your owner builder finance project approval, your lender will be able to order an appraisal. This will determine the market value of your project. |
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The difference between the appraised value and the cost to build will represent your savings for building your own home! |
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When you have obtained credit approval and project approval from your lender, you are ready to set the closing date on your loan and begin construction! |
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