How Construction Financing Works
Unlike standard mortgages, a construction loan release funds in stages called 'draws' as building milestones are verified by bank inspectors (foundation, dry-in, rough mechanicals, final keys).
Pre-Approval & Contingency Planning
Banks require complete floor plans, builder specifications, and general contracts. They build in a 10-15% cost overrun contingency fund to protect the project's completion.
Builder Draw Schedule Agreements
We establish a clear draw schedule with your lender so subcontractors are paid promptly, keeping framing, roofing, and trim work moving continuously.
Have Questions About This Topic?
Shane and Stormie Hines can help analyze your property, check septic layouts, or review construction plans. Let's start the conversation.
Discuss Your Plan With Shane & StormiePlanning Checklist
- ✓ Get builder contract finalized
- ✓ Obtain bank pre-approval letter
- ✓ Establish draw milestones
- ✓ Retain 10% cash contingency reserves