Contract and Disposition
After the house is selected, the contract is written and the paperwork process begins. Our office will process the contract, order the survery, power the location, and send water and sewer availability letters (if applicable). Most other paperwork required for permitting hinges on the completion of the building plans.
Loan Application, Approval, Appraisal, Closing
If the house is financed, the owner must apply to an approved lender for the funding of the project. Any amount the owner intends to finance must be included in the loan. After the closing of the loan, additional funds cannot be borrowed. We suggest that the loan closing be delayed to coincide with our ability to break ground on the home. It is the owner's responsibility to schedule closing and to ensure that sufficient funds are borrowed.
Among the items needed for application are:
- Copy of Contract
- Copy of Driver'ss License, Social Security Cards, Passport
- Most recent pay stubs covering 30 days and 2 years of W2's
- Most recent 2 months of bank statements
- 2 years tax returns with profit/loss if self employed
- Name and Address of Landlord
- Copy of divorce decree and settlement (if applicable)
- Bankruptcy papers including discharge (if applicable)
- Lease rental agreements on income property (if applicable)
- Contract on present home or closing statement if home has sold within last 6 months. If the home is on the market, a copy of the listing agreements (if applicalbe)
- Copy of warranty deed, closing statement, and Owner's title policy if you own the property already
- If you have co-signed a loan, 12 months of cancelled checks, or the loan will count against you.
- If gift funds are used, a gift letter must be filled out and returned with a copy of the deposit slip showing the funds placed into your account and evidence of withdrawal from the donors account.
- Copy of most recent statement of all debts
- Application fee
- Copy of stocks, annuity, 401K, etc.
- Builder will supply the bank with plans and specifications for appraisal.
- Notice of Commencement (NOC): The owner signs this document at the bank closing. I is recorded into the public records of the appropriate county and is posted on the job site.
Cash Transactions
With all cash transactions, we require that one advance draw be placed in an escrow account with one of our approved lenders. The lending institution will disburse the Owner's funds to us directly during the course of construction. The lender records the notice of commencement, inspects the project after we make a draw request, and collects contractor's affidavits of no liens, surverys, etc., from us prior to disbursing any draws. All costs associated with the escrow agreement are paid by the Owner.
Check Print
The check print is the start of the planning process. The construction of the home and most of the paperwork hinges on the timely completion of this print. On this print all changes that are reflected in the building agreement are placed on the plan. Any other customer changes (other than electrical) must be made at this time. Additional drafting fees will apply if the Owner makes changes after the check print. The Owner will sign the check print indicating approval of changes. Paperwork will not proceed until this print is complete!
Final Print
The final print is a review of changes that were made on the check print. Only electrical changes may be made on this print without the Owner incurring additional drafting charges. The Owner will sign the final print indicating approval.
Color Selections
During the color appointment, all colors associated with the house must be selected. This appointment must be scheduled no later than the final print. Selections may include cabinetry, flooring, paint, tile, roof, etc. The Owner will sign the color selection sheet indicating their approval.
Engineering
We hire an independent structural engineer to review all structural components in the home. The house engineering takes place after the final print. The process for enginering requires two trips to the engineer. On the first trip, the engineer will "redline" the plans, making any required changes in red pen. We apply these redline changes to the master plan, make a minimum of 3 full sets of plans and return them to the engineer. The engineer will then verify that we have made his required changes and apply a raised engineer seal to the plans. He will also attach approximately 10 additional pages to the plans.
Permit Application
After we collect all required submittals, we apply for a building permit. The appropriate building department will then process the application. Time frames vary greatly depending on the building department workload. Generally, it takes about 30 days to approve the building permit.
Construction
After the building permit is issued, the site improvement phase begins! - See Construction Process