How to Get a Construction Loan—My Personal Experience

If you’ve been Googling construction loans but all the information is making your head spin, consider this sort of a “101 of Construction Loans” to help you wade through the murky waters of construction financing.

While my experience is limited to my own situation, this is how I’d explain the process to a friend.

It’s what I believe every first-time borrower should know before walking into a bank.


Meet with a loan officer to get your loan preapproval (aka initial credit approval). Submit all the required borrower, builder, and project documentation.


The bank provides your loan disclosures. The bank approves your builder and project.


The bank orders a home appraisal. Your final loan application is submitted to the underwriter.


The underwriter reviews the loan documentation and appraisal for final approval. You (or your builder) set up course of construction insurance.


Your loan officer confirms the terms of the construction loan. All documents are sent to the title company for signing. You sign the documents at the title company and pay any applicable costs.

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