Construction Loans: Finance the Build Before You Pick the Finishes

THE WORKING BANKER

NOLA Lending currently offers construction financing for buyers planning to build a home. A construction loan is different from financing an existing house because the lender is evaluating both the borrower and a project that does not yet exist in finished form.

What to understand

Plans, specifications, builder information, land ownership, budget, appraisal, draws, inspections, contingency, and the transition to permanent financing can all affect the structure. Before a buyer spends heavily on architectural work or commits to a builder, it is useful to understand how the financing will treat the land, required cash, changes, and cost overruns.

Questions worth answering early

• Is the land already owned or being purchased with the project?

• What builder documentation is required?

• How are draws requested and inspected?

• How are change orders and cost overruns handled?

• What happens when construction is complete?

The Working Banker Take

Construction financing is a project-management loan. The more details resolved before work starts, the fewer financing surprises appear halfway through the build.

This article is for general educational purposes only and is not a commitment to lend or an offer of credit. Mortgage programs, underwriting guidelines, eligibility, pricing, terms, and market availability can change. All loans are subject to credit and underwriting approval, and not every borrower or property will qualify. Confirm current program details with a licensed mortgage loan officer before relying on a specific financing structure.

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WHY THE WORKING BANKER A banker who works through the details. I bring a real estate operator's mindset to mortgage lending: understand the borrower, understand the property, communicate clearly, and stay involved in the financing from the first conversation through closing. CALL 601.810.3377 TEXT GREG TODAY Call or text Greg Gibson today at 601.810.3377.