Building isn’t just slower than buying an existing home. The money moves differently, and that’s where most buyers get caught.
Progressive draws
The loan doesn’t come as one advance at the notary. It releases in tranches as the site progresses: foundation, structure, finishing, occupancy. Each tranche follows an inspection confirming how far the work has really come.
What the lender requires
- The construction contract and the plans.
- The work schedule.
- The new home warranty plan.
- Detailed quotes for specialized trades.
Self-building narrows the options
With no general contractor on the contract, the lender sees more risk. Several decline right away. Those who accept ask for a bigger down payment and a detailed budget. Your building experience counts in the decision.
Plan for overruns
Construction projects run over schedule and budget far more often than they beat them. Building in a margin of time and money isn’t pessimism. It keeps you from having to refinance mid-build, at the worst possible moment.
Plan my financing