Building steps towards your dream home
Know your Finances
Collect the following documentation for the application/prequalification process:
- a recent paystub
- two years of W2’s and tax returns (business if applicable)
- recent bank statements (checking, savings, retirement, etc.)
Hold off on large purchases or applying for additional credit as it may impact your credit score
Know the Process
Step 1: Application/Prequalification
- Apply for financing at West Gate Bank® and receive a free prequalification consultation regarding your lot loan, construction loan and final mortgage
- Collect the following documentation for the application/prequalification process: a recent paystub, two years of W2’s and tax returns (business if applicable), recent bank statements (checking, savings, retirement, etc.)
- Hold off on large purchases or applying for additional credit as it may impact your credit score
Step 2: Finalize Details / Appraisal
- Builder provides final plans, specs, budget and contract to West Gate Bank
- Appraisal is arranged by West Gate Bank based on information provided by builder
Step 3: Loan Closing
- Not starting to build right away—close on a lot loan
- Building right away—close on a construction loan with land purchase as first draw
Step 4: Construction Begins
- Consider your construction loan a line of credit and interest is paid on funds used
- Constructions draws are submitted monthly—this process is audited by West Gate Bank:
- Loan Officer compares draw to initial bid/estimate and discusses draw with borrower
- Loan Officer conducts monthly on-site inspections
- Title company searches for any new construction liens and pays subcontractors directly
Step 5: Permanent Mortgage Loan
- Upon completion of your home, your permanent mortgage loan (15, 20 or 30 year fixed) is a
refinance of the construction loan.