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Home ConstructionRoad MapThe guide to making home happenfrom the ground up
Home ConstructionRoad MapThis isn’t just a new home, it’s “the” home. The one you’ve been dreaming of forever.And to get it, you’ve got to build it – with TDECU Mortgage by your side.The process of building and financing a new home is more complex than buying anexisting home. It will take planning, teamwork and vision. We’re mapping out theentire process to help you see what’s ahead and how to get to your final destination– your dream home. We’ll clearly outline what is required at each step along the wayand give you our best guidance for keeping your construction project on track.Planning withTDECU MortgageMoving Forwardwith your ApplicationProcessing & UnderwritingClosingConstructionLoan Conversion/Modification
PlanningDuring this phase, your Loan Officer will: Talk with you to learn more about your financial needs, review your credit report and discusspossible loan programs, documentation and payments required. Discuss timelines, project plan requirements, builder review and registration.Member Responsibility: Be prepared to provide information regarding income, assets, monthly debts, the property you wish tobuild on and any other real estate you own. Select your builder and house plans, then prepare to execute a construction contract with the builder. Confirm with your Loan Officer that the builder you’ve selected is qualified to do business with TDECU.If not, your Loan Officer will provide a Builder Package that your builder may complete and submit fora review.*Moving forward with your ApplicationDuring this phase, your Loan Officer will: Provide and discuss loan options that fit your needs and explain the interest rate lock and feenegotiation process. Review your loan application and relevant loan disclosures with you.Member Responsibility: Carefully review and return all signed loan documents. Shop for builders risk insurance if not provided by your builder. Provide all requested documents, new or updated, in a timely manner including: Legal blueprints of the proposed home including floor plans, measurements, foundation,framing, roofing, electrical and plumbing plans. Construction specifications along with a signed construction contract outlining the proposedproject, total cost, responsibilities of each party and an estimated timeline of completion. Builder’s proposed draw schedule, which is a plan to indicate how the builder expects toutilize construction funds throughout the project. Original surveys of the property, if available, and detailed bids for any work not included inthe scope of your builder’s construction contract.*While TDECU does not endorse or promote any specific builder or contractor, we do conduct research in order to protect you and TDECU.This process includes a thorough review of your builder’s experience, qualifications, reputation and financial stability and may take 2-3 weeks tocomplete depending on the level of cooperation from your builder. In the event your builder cannot be qualified to do business with TDECU, you will notbe able to proceed with construction financing unless another builder is selected.
Processing & UnderwritingDuring this phase, your Loan Processor will: Order third-party services such as appraisal, title and flood zone determination. Let you know about any outstanding documentation needed from you and notifyyou once a final approval is obtained.Member Responsibility: Provide all documentation requested in a timely manner. Work with your Loan Processor to arrange for the property to be surveyed priorto closing and gather estimates for future surveys to be done after constructionbegins. If your property is located in a Special Flood Hazard Area, an elevationcertificate will be required. Obtain detailed and accurate construction plans and specifications for appraisal.ClosingDuring this phase, your Loan Processor will: Work with you and/or your builder to coordinate and schedule the loan closing. Let you know the amount of funds you will need for closing and explain paymentoptions. Have a title/closing agent meet with you and your builder to sign your finalclosing documents. Deliver loan documents to the title/closing agent.Member Responsibility: Attend the closing to finalize closing documents. Provide payment for actual costs plus projected survey work (not including itemssuch as insurance and escrow account deposits, which will be collected atmodification in step 6).
ConstructionDuring this phase, your TDECU Constructing Lending Team will: Arrange for inspection of the property during construction and prior todisbursement of any construction draws requested. Coordinate with you and your builder to administer and disburse draws accordingto the original draw schedule and budget during the processing phase. Pleaseallow a minimum of three business days for the processing and disbursement ofdraw requests.Member Responsibility: Monitor your progress and budget and work to avoid late decisions that couldresult in increased construction costs. Insist on written change orders and pay for cost coverages from your own fundsat the time of each change order. Notify your Loan Officer and Processor when you are approximately 30 daysaway from completion.Loan Conversion/ModificationWhen your project is complete, your loan will be modified to reflect final payment terms.At this time, TDECU will: Have your Loan Officer work with you to lock in the final interest rate on your loan. Ensure your appraiser re-visits your property to confirm the home is ready. Have your Loan Processor work with you and the Construction Lending Team toarrange signing of final documents by you and your builder, contact you with theamount of funds needed for modification and explain payment options.Member Responsibility: Provide your insurance agent’s contact information to your TDECU Loan Processorand coordinate with the TDECU Construction Lending Team to schedule the finalappraisal and survey inspections. Provide any payment needed, typically for interest on the construction loan, prepaidinsurance and escrow account deposits not collected at the construction loan closing.
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Construction specifications along with a signed construction contract outlining the proposed project, total cost, responsibilities of each party and an estimated timeline of completion. Builder's proposed draw schedule, which is a plan to indicate how the builder expects to utilize construction funds throughout the project.
