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New Construction Loan Checklist

Construction-to-Permanent and Builder Lending Resource

Streamline your new construction loan application with our comprehensive document checklist. For owner-builders, buyers using a production or custom builder, and construction lenders. Collect plans and specs, the construction contract, budget and draw schedule, permits, builder credentials, lot documents, and borrower income and assets so the lender can underwrite the project and set up draws.

New Construction Loan Checklist form template preview

Key Benefits

Package plans, specs, and the construction contract
Document budget, contingency, and draw schedule
Collect builder licenses, insurance, and references
Show lot control, permits, and as-completed appraisal items
Reduce conditions before the first draw
Professional construction lending workflow

Common Use Cases

Buyers originating a construction-to-permanent loanOwner-builders financing a custom homeProduction-builder spec or presale financingConstruction lenders setting up a draw processBorrowers who already own the lot and need build fundsArchitects and builders assembling a lender package

Frequently Asked Questions

What is a new construction loan?
A construction loan funds the build in draws as work is completed. Many owner-occupant products convert to a permanent mortgage (construction-to-perm) at completion so you close once. Interest is often interest-only during the build on the amount drawn.
What documents do construction lenders require?
Plans and specifications, a fixed-price or cost-plus contract, line-item budget, draw schedule, builder license and insurance, permits or permit status, lot deed or purchase contract, as-completed appraisal, and a full borrower credit file (income, assets, reserves).
Can I be my own general contractor?
Some portfolio lenders allow owner-builders with a strong resume, licensed subs, and more contingency. Many construction-to-perm programs require a licensed GC. Confirm the overlay before you design the project as owner-builder.
When is the appraisal done?
Lenders typically order an as-completed (and sometimes as-is lot) appraisal based on the plans and specs. Value must support the total loan. Significant plan changes after appraisal can require a recert or a new report.

Checklist

Application

Construction or construction-to-permanent application
Required

Lot address, builder, estimated completion, and requested loan amount.

Project

Complete plans, specifications, and any architectural addenda
Required

What the appraisal and budget are based on. Note energy or code upgrades.

Executed construction contract (fixed price or cost-plus)
Required

Parties, price, change-order process, and completion date.

Line-item budget, contingency, and proposed draw schedule
Required

Must cover hard costs, soft costs, and inspection fees. Contingency per lender.

Builder

Builder license, insurance, and references or financials
Required

GC license, GL and workers-comp insurance. Some lenders require builder financials.

Property Documentation

Lot control (deed or contract) and permit status
Required

You must control the land. Permits may be a pre-closing or first-draw condition.

Borrower Documentation

Borrower income, asset, and reserve documentation
Required

Same as a mortgage file, plus reserves to carry the interest-only period.

Valuation

As-completed appraisal (lender-ordered) based on plans
Required

Supports total project cost. Plan changes can trigger a new appraisal.

Identity

Government-issued photo ID for all borrowers
Required

Plus entity docs if an LLC will hold title during the build.