Step 2: Qualify for Financing           (Continued)            Part 2

Also, the line-of-credit may provide for interest payments during the construction period andcontingencies to cover potential cost overruns, as well as closing costs.

6. Don't underestimate your need for up-front cash. Utilize the Pre Construction Budget Worksheet at www.myconstructionloan.com A Construction Loan does not pay pre-construction costs such as: Perk test, septic plan, soils engineering, building & foundation plans, plot and site plans, appraisal & credit reports or fees to municipality for plan check, and etc.

7. Initial Funds from a Construction Loans are not disbursed until after the Site Plan has been approved by the local government agency.

8. Lenders normally have a fixed draw schedule tied to each part or phase of the construction project.
     a. Typically, the lender will send out an inspector to verify that
         specific work has been completed.
     b. If the inspection passes, funds will be released to pay
         subcontractors and suppliers who completed work during the
         inspected part or phase.
     c. If you request more draws than allowed per project, you may
         be charged a nominal fee per draw.

Step 1 - Find land Step 2 - Qualify for Financing Step 3 - Select Floor Plan Step 4 - Order Home Step 5 - Obtrain Permits Step 6 - Prepare Site Step 7 - Recieve Home Step 8 - Finish-Out Home Step 9 - Finalize Details Step 10 - Move in!